When the government guaranteed student loans, it removed the risk for colleges. This allowed them to hike tuition prices unchecked, knowing students had access to funding. The resulting flood of graduates has also made a college degree less of a differentiator in the job market.

The Fed's rate hikes fail to address the root causes of inflation in housing, education, and healthcare. These sectors suffer from structural issues like regulation and bureaucracy. Higher rates can even be counterproductive, for instance, by stifling new housing construction, which restricts supply.

Viral posts comparing nominal prices from 1971 to today are misleading. The actual, inflation-adjusted data is more damning: home costs have doubled and healthcare has quintupled relative to a mere 20-30% rise in real family income, highlighting a targeted, systemic problem.

While deregulation has made consumer goods like TVs drastically cheaper, essential family needs like healthcare, education, and housing have seen costs skyrocket. This suggests market dynamics that work for consumer electronics fail to provide affordable necessities for the average family.

A paradoxical market reality is that sectors with heavy government involvement, like healthcare and education, experience skyrocketing costs. In contrast, less-regulated, technology-driven sectors see prices consistently fall, suggesting a correlation between intervention and price inflation.

It's misleading to cite a single inflation number. There's massive deflation in globally competitive sectors like electronics (touched by China and the internet). Simultaneously, hyperinflation exists in state-regulated, protected domestic sectors like US education, healthcare, and housing.

Runaway costs in education, housing, and healthcare stem from government intervention. When the government promises to provide a service (e.g., student loans), it becomes a massive "buy-only" force with no price sensitivity, eliminating natural market forces and causing costs to balloon.

Policies like price caps (e.g., for insulin) or price floors (e.g., minimum wage) that deviate from market equilibrium create distortions. The economy then compensates in unintended ways, such as companies ceasing production of price-capped goods or moving to under-the-table employment to avoid high minimum wages.

The sectors poised for the biggest AI disruption are healthcare and education, which are currently inefficient and the largest contributors to U.S. inflation. AI promises to deliver personalized services in both fields at a fraction of the cost, creating a massive deflationary effect.