Inflation: Destroying the Middle Class
Inflation is a stealth tax on Americans that diminishes wealth and purchasing power, particularly of the middle class. The orchestrated runaway inflation under the "Joe Biden" regime was particularly onerous.
It's important to understand that while inflation pushes up prices, it takes a negative inflation rate to actually decrease prices. Negative inflation corresponds with economic recession and depression, which bankers strive to avoid at all costs. Thus, inflation is cumulative. The inflationary damage of the "Joe Biden" regime will not be erased.
The article Inflation, a Dirty Word for Accommodation, by George F. Smith, Lew Rockwell, 24 January 2026, summarizes the deleterious effects of inflation. Here are a few excerpts:
As a "stealth tax," inflation requires no legislation to impose...
Government inflates through its central bank, the Federal Reserve System... its foremost responsibility is to support favored market actors through a convoluted process of monetary inflation...
Inflation, economist Judy Shelton explains, chisels away at the foundation of free markets and the laws of supply and demand. It distorts price signals, making retailers look like profiteers and deceiving workers into thinking their wages have gone up...
The Fed's inflation is often part of a process called monetizing the federal debt, a stultifying expression describing the hocus-pocus used to cover government’s deficits...
What happens when the Fed "accommodates" us by increasing the stock of money?
First, it reduces the value of the dollar... putting upward pressure on prices...
... a depreciating dollar discourages savings...
Inflation comes to [incorrectly] mean not an increase in the money supply, but the rise in prices itself...
Fifth, inflation raises nominal incomes, pushing people into higher tax brackets, which increases government tax revenue...
Sixth, inflation shifts wealth from people who can't or don't know how to defend themselves from monetary destruction...
Seventh, the Fed’s "accommodative" measures keep people working much later in their careers...
Tenth, government may pose as the savior of a group of voters they’ve impoverished, such as the elderly, by subsidizing their medical expenses...
And last but not least, inflation serves as an intergenerational tax, limiting accrued wealth available to transfer to successive generations.
Related
Book: The Creature from Jekyll Island: A Second Look at the Federal Reserve, by G. Edward Griffin.