Discuss Question 5
5. FISCAL KNOWLEDGE: Allowing significant additional inflation is an appropriate and effective means to reduce our nation’s long-term debt burdens.
ANSWER: False – Inflating our way out is unacceptable. Inflation is a hidden tax and arguably the cruelest tax of all. History has taught us that high-levels of inflation and hyperinflation can destroy the fabric of society, decimate savings, and provide no long term benefit to a country that decides to use the printing press instead of logic. It also tends to harm the most vulnerable in our society the greatest. Importantly, the real threat to our fiscal future relates to Medicare and Social Security obligations which grow faster than inflation and faster than the economy, according to the Bureau of Labor Statistics.