NOTE: Inflation can be defined as: an increase in the general price level of goods and services; alternatively, a decrease in the purchasing power of the dollar.
1. Which of the following statements made by Thomas Sowell have you heard before? For the statements you are not familiar with, why do you think you have not heard these ideas held by half of the country?
- Raising the tax rates on everybody in the top two percent will not get enough additional tax revenue to run the government for ten days. (from para. 2)
- Taxing "the rich" will produce a drop in the bucket when compared to the staggering and unprecedented deficits of the Obama administration. (from para. 4)
- Yet political and media discussions of the financial crisis have been focused overwhelmingly on how to get more tax revenue to pay for past and future spending. (para. 5)
- All the...talk about how tax rates will be raised only on "the rich" hides the ugly fact that the poorest people in the country will see the value of their money decline, just like everybody else, and at the same rate as everybody else, when the government creates more money and spends it. (para. 16)
- Inflation taxes everybody, the poorest as well as the richest. (from para. 18)
2. What is the main idea of Dr. Sowell's commentary?
3. Do you think he makes a persuasive argument? Why or why not?