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No one is insulated. If it isn’t taken from people directly, then people feel the spending in price inflation. Every time the government spends, they issue a tr

No one is insulated. If it isn’t taken from people directly, then people feel the spending in price inflation. Every time the government spends, they issue a treasury. That treasury is then used as the backing for loans from the FedRes to members banks. Those banks then lend a multiple of that. The real issue with spending cuts is that the public will not accept any reductions to entitlements, the poor won’t accept cuts to welfare programs, and the donor class won’t accept cuts to military spending. This means there’s zero political will to fix the situation.

Aloisius 1y ago
Most people are quite isolated because things like inflation are indirect. Seeing the link between inflation and spending is hard when it's easier for the average person to just see covid or greed or trade wars or simply fed policy and assign blame there. The direct link between spending and taxes is far easier for people to understand. So instead, raise taxes by 20+%. Setup automatic tax adjustments to cover spending changes to ensure the debt shrinks every decade.
- BirAdam 1y ago
  The effects of inflation are felt. For example, the deterioration in product quality, packaging, and even product size are attempts of companies to prevent raising product prices. Where people absolutely see it are in those things usually funded by debt: houses, cars, university education. There are myriad reasons for rising product prices and decreasing product quality, but one of those reasons is monetary inflation. As noted, however, these is zero political will to reduce spending, and I therefore believe the USA will suffer a monetary crisis in the mid-2030s. I hope to be incorrect, but I just don't see it happening. Raise taxes? Lose votes. Reduce spending? Lose votes. Edit: Ah wait, rereading you're 100% correct. It's more difficult to see all of the cases I mentioned as being due to monetary inflation. So, while felt, people don't immediately attribute it as such.

Aloisius 1y ago

Most people are quite isolated because things like inflation are indirect. Seeing the link between inflation and spending is hard when it's easier for the average person to just see covid or greed or trade wars or simply fed policy and assign blame there. The direct link between spending and taxes is far easier for people to understand. So instead, raise taxes by 20+%. Setup automatic tax adjustments to cover spending changes to ensure the debt shrinks every decade.

BirAdam 1y ago
The effects of inflation are felt. For example, the deterioration in product quality, packaging, and even product size are attempts of companies to prevent raising product prices. Where people absolutely see it are in those things usually funded by debt: houses, cars, university education. There are myriad reasons for rising product prices and decreasing product quality, but one of those reasons is monetary inflation. As noted, however, these is zero political will to reduce spending, and I therefore believe the USA will suffer a monetary crisis in the mid-2030s. I hope to be incorrect, but I just don't see it happening. Raise taxes? Lose votes. Reduce spending? Lose votes. Edit: Ah wait, rereading you're 100% correct. It's more difficult to see all of the cases I mentioned as being due to monetary inflation. So, while felt, people don't immediately attribute it as such.