Great points Andrew! The counterpoint is that the US (as the world’s reserve currency) may or may not follow those rules. We’ve also seen Trump massively decrease revenues without any inflation appearing.
From a societal perspective, when you have massively unequal wealth, catastrophic hyperinflation would seem to be a good thing. Don’t we want wealth to erode so that we can achieve a more equal society? Of course, concentration of wealth in capitalism is probably a feature, not a bug.
At the very least, inflation reduces the repayment cost of existing loans (like mortgages and student loans). For those of us who are likely to have negative net worth for most of our working careers, inflation seems much less important than full employment. When I lost my dream job due to Covid, whether inflation would eat away at my real earning power in retirement was much less of a concern than homelessness.
I’d be curious as to your thoughts about universal basic income (which would seem to reduce homelessness and crime). Is it pointless because government spending leads to inflation, thus negating the effect of the basic income? We’ve repeatedly seen tax cuts and increased government spending in the last 20 years without any inflation. The last serious inflation (oil crises) that I’m familiar with seems to have led directly to a better American economy (domestic oil production).