I don't think there's a program in the history of the world that made it so worthwhile to "reduce, reuse, recycle" [as does the Fair Tax]. Knowing that federal taxes increase the price of everything by 30%, individuals will look to spend less. They'd be less susceptible to "impulse" buys, won't throw so much stuff away, and will look for ways to save on gasoline and cut their energy bills.Producers will have to adjust to the new buying philosophy of the public. Because individuals will save more and spend less; they'd be less inclined to buy junk – especially since that junk will cost 30% more than now – preferring items that last. Consumers will demand high gas mileage from cars and energy-efficient homes. As monetary inflation today encourages people to spend, spend, spend to get rid of their increasingly worthless dollars, the Fair Tax will encourage people to save, save, save.
Comments are welcome at the Partial Observer.
Posts
