Inflation Is the Mother of Big Political Change

Since excessive inflation is one characteristic outcome of a fiat money system, who is really surprised that such a moment might be on us again? The table would seem to have been set for a long time: Unruly government borrowing. Mounting regulatory burdens and disincentives to business and workers. A decline in labor force participation. The peculiar unwillingness of a large cohort of young men to pursue either work or schooling.

Then came the pandemic and the pandemic spending binge, which shifted public demand away from services (no longer available) to goods that the supply chain struggles to deliver.