It is also the case that, in allowing deductions for depreciation based on historical cost and taxing profits on inventory on the basis of the historical cost of acquisition, the tax system, in an inflationary environment, over-taxes, and thus discourages, investment in other kinds of businesses.
I do not say that such a system cannot function, but I do say that in my three decades in and out of government, I have never seen it function well. The undeniable, though regrettable, fact is that the most effective policymaking is done outside the immediate glare of the press.