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Persistent federal deficits devalue currency, shifting purchasing power away from wage-reliant citizens toward those holding appreciating financial assets. Because the public fails to recognize inflation as an invisible tax, voters repeatedly support populist policies that worsen their own financial degradation.
The process of running government deficits, which requires money printing, functions as a hidden tax on the populace via inflation. This devalued currency is then funneled primarily to those who own financial assets, systematically increasing wealth inequality.
When governments print money to cover deficits, they devalue currency, effectively imposing a hidden tax on citizens. The only protection is owning assets like stocks, real estate, or businesses whose value rises with inflation. Since 90% of Americans lack significant assets, they are most exposed to this wealth erosion.
When governments engage in deficit spending to provide benefits or fund programs, the cost is not free. It is paid for by devaluing the currency through inflation, which erodes the purchasing power and savings of every citizen.
Deficit spending acts as a hidden tax via inflation. This tax disproportionately harms those without assets while benefiting the small percentage of the population owning assets like stocks and real estate. Therefore, supporting deficit spending is an active choice to make the rich richer and the poor poorer.
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.
There is no plan to truly pay off America's debt. The actual strategy is to use the invisible tax of inflation to transfer the debt's burden onto citizens who don't understand monetary policy. Those who hold cash and lack hard assets will unknowingly finance the government's deficit by losing their purchasing power over time.
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.
Inflation is framed not just as rising prices, but as a form of secretive theft. Since only a small percentage of Americans own significant assets that appreciate with inflation, the policy mechanistically funnels wealth upward from the working and middle classes to the top 10%, creating vast, systemic inequality.
The focus on "the wealthy not paying their fair share" distracts from the primary mechanism eroding middle-class wealth: government deficit spending. This necessitates money printing, which devalues the savings of ordinary people and drives up asset prices, benefiting asset owners at the expense of savers.
Politicians systematically utilize deficit spending to promise entitlements for reelection, driving central banks to expand the monetary supply. This mechanism continually devalues currency, functioning as indirect taxation that strip-mines ordinary citizens who hold their wealth purely in fiat cash. To protect against this systemic devaluation, individuals must aggressively allocate capital into productive assets and the stock market.