Monday, June 14, 2021

Why BIG government loves inflation

                                                INFLATION!!! 

That dirty word that we all have become more knowledgeable about than we ever wanted too. When we go to the store we see those prices for goods raising daily. From food, to wearables, to lumber it is getting a little ridiculous. 

Have you been waiting for the Government to step in  and stop this price gouging? Don't hold your breath waiting for this to happen. 

I wish to share some examples of how BIG government benefits from Inflation. Not too long ago a 4x8 sheet of 7/16 OSB would cost you about $7.60 per sheet, fast forward to today and that same sheet will cost you $55.00. If the cost was only limited to those listed amounts...... Did you forget about sales tax? Oh that good old sales tax. Who benefits from sales tax? While Government of course. The average sales tax on that sheet of $7.60 OSB is about .63 while the same tax on a $55 sheet is about $4.53. If one person buys 25 sheets to build a small building the total tax for today is about $113.00 payout to the government. If we take just the OSB and Plywood made by Norbord Inc based in Vancouver Canada we would be talking about 240 million sheets of OSB/Plywood. assuming half of those panels were distributed to the United States the amount of money from sales tax is obscene. At todays price it creates $544,500,000.00 in tax revenue, if we could just go back to the "old days" of 2019 that same tax revenue would be a meager $75,240,000.00. Do you see why BIG GOV loves inflation? 

This is just one example of rapid price increase that you and I have to pay. Are you starting to see just how fast those wonderful stimulus payments will disappear.  This year the average family will pay an additional $550.00 in sales tax plus and additional $6500.00 in cost of goods. This will certainly make some families suffer and you have BIG GOV to thank. 



1 comment:

Why BIG government loves inflation

                                                INFLATION!!!  That dirty word that we all have become more knowledgeable about than we ever...