The "Inflation Tax"

I was reading U.S. News and World Report today and came across an article titled, "Ron Paul's Libertarian Lesson for John McCain" written by James Pethokoukis.  Being that I'm a fellow Greek and interested in most Libertarian views I decided to read the article.  In it, Mr. Pethokoukis briefly explains, what i think, is one of Ron Paul's better ideas on stimulating the American economy... legalizing competing currencies.  So, what's your take on the "inflation tax"?  What are your thoughts on how we could boost the economy and climb out of deficit?  Do you possibly believe that the "Fair Tax" is a possible solution?

I look forward to reading your replies.

- Zac Papantoniou (Guest Writer)

 

Comments

[Martin Owens]

Hmmm.

Possible, but a hell of a hard sell. For most people the working definition of "money" is the paper and coins issued by the government exclusively. There is also an element of compulsion: if you are in debt to Jones, and you offer him greenbacks to settle that debt, Jones cannot refuse them and sue you for something else in payment, the court won't listen to him.

Then, too, several " alternate" and " private" systems of barter/scrip such as ITEX have been out there for a few years now, but their performance has been nothing to cheer about. Such systems tends to fill up with junk peddlers, crooks and dingbats: AND the system itself takes its commissions in US dollars only, thank you very much.

Of course there is the basic swap system that never goes away, as when a CPA does a dentist's taxes in return for free checkups.
No government yet can snoop so effectively as to catch that.