“Congress has been spending more money on you but has been unwilling to raise taxes. As a result, it has imposed inflation as a tax, that’s one tax you don’t have to vote for, but you have to pay.”
That’s a quote from Milton Friedman, the famous conservative economist, talking about the role the government can play in inflation.
In one of my previous articles, Inflated Fed-Head, we talked about this and how the government and private businesses left the country to pay for their actions with inflation after the COVID-19 recession.
However, the country has been paying for the various actions of the government and private sector for some time now.
I believe this is because the government and private sector have been participating in what seems like rouge economics.
To me, rogue economics is when certain economic actors “go rogue.” They act in unexpected ways and go off script without regard to the risks of those actions.
And when both the government and the private sector participate in rogue economics, we are left with significant problems like moral hazard and the breakdown of the fundamentals of capitalism.
So, let’s look at how both the government and the private sector participate in this type of rogue economics and how it can lead to moral hazard, the disintegration of capitalism, and further economic problems due to the susceptibility of the financial system.
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