Secular inflation is a policy outcome, not an accident. Continuous government spending, debt monetization, and policies aimed at preventing any reduction in aggregate demand are the primary drivers, counteracting the natural deflationary pressures of a crisis and embedding inflation.

The real conflicts dividing society are not based on identity but on disastrous government policies. Issues like deficit spending, money printing, and anti-competitive regulations are the true "enemies" that create the economic pain fueling social division, while identity is used as a distraction.

Unlike 2022, when stimulus savings allowed consumers to absorb price hikes, the financially depleted middle class now lacks the ability to pay more. This forces them to push back on price increases, creating significant consumer resistance that acts as a powerful, albeit painful, check on a new round of inflation from tariffs or other cost pressures.

Excessive debt forces governments to print money, which inflates asset prices. This process mechanically enriches the asset-owning class while devaluing currency for wage earners, hollowing out the middle class into either the wealthy or the poor.

To fund deficits, the government prints money, causing inflation that devalues cash and wages. This acts as a hidden tax on the poor and middle class. Meanwhile, the wealthy, who own assets like stocks and real estate that appreciate with inflation, are protected and see their wealth grow, widening the economic divide.

Contrary to narratives about excess demand, the recent inflationary period was primarily driven by supply-side shocks from COVID-related disruptions. Evidence, such as the New York Fed's supply disruption index accurately predicting inflation's trajectory, supports this view over a purely demand-driven explanation.

The recent inflation was not due to money printing, but a supply shock from lockdowns where prices surged far ahead of incomes. This created a permanent "phase shift," reducing purchasing power for the majority of people and preventing a true economic recovery as incomes never caught up.

Public anger is misdirected at the wealthy. The true root of unaffordability is politicians and central banks running massive deficits and printing money to cover them. This devalues currency, functioning as a hidden tax on the poor and middle class while benefiting asset holders, thus fueling inequality and rage.

Since WWII, governments have consistently chosen to print money to bail out over-leveraged actors rather than raise taxes or allow failure. This long-term policy has systematically devalued currency and concentrated wealth, creating today's deep economic divide.