Elon Musk says inflation is championed by those who claim to be progressives. The businessman warns that inflation is the most regressive tax that exists.
Throughout 2021, inflation in the United States of America reached record values, leading to the rise of various concerns about the situation. Elon Musk, the current director of the electric car company Tesla, highlighted his thoughts on the subject via Twitter.
Elon Musk, the third richest chairman on the planet, released a short sentence on the social network that generated more than 76,000 likes. What he put is: “Inflation is the most regressive tax of all, but it is defended by those who claim to be progressives.” In this way, he highlights a political satire about the actual economy.
Responding to a tweet that reveals that the dollar value has crumbled down by almost 90% in the last 70 years, Elon Musk realizes that inflation is due to the impoverishment of the currency. This situation raises their concern about the decline in purchasing power in the face of the unstoppable rise in prices in the United States of America.
Bitcoiner businessman tycoon, who had gained popularity for defending cryptocurrency investment, says that the ideology of progressing as a country and generating inflation at the same time is contradictory. They do not go hand in hand, which is why he holds the government responsible for this economic problem.
Elon Musk used this tweet to attack the rising inflation in the United States of America today. While the price increase index used to be 0 to 2% each year in the territory, in 2021, it managed to surpass 6%.
Argentina and Venezuela surpass the Inflation of the United States of America by Almost 600% and 9,000% More
The price increase index in the United States of America is high compared to previous years. However, the price increase is almost insignificant for Latin America, which got used to living in constant inflation.
Venezuela, Argentina, Brazil, Uruguay, and Paraguay are the only five Latin American countries that exceed current inflation in the United States of America. The rest of the Latin American countries maintain lower values, such as Chile (5.8%), Mexico (6.2%), and Colombia (4.6%).
Bitcoin Got Described as a Solution to Overcome Inflation and Currency Devaluation
Widespread inflation makes people look for hard currencies to maintain the value of their savings, something that reflects in the use of bitcoin. This cryptocurrency, which counts on the highest market capitalization of the ecosystem of digital assets, gets a more bullish position than the dollar.
On the other hand, the dollar has managed to experience devaluation in the long term, while bitcoin has increased by at least 350% in 2021. Several rulers of the United States of America began to collect their salaries in bitcoin, a cryptocurrency that is also popular in Latin America.
Residents of countries like Argentina and Venezuela found in the sale of cryptocurrencies a solution to deal with inflation and devaluation of the local currency.
By: Jenson Nuñez
