"People get confused about what inflation is. Inflation is devaluation of the currency. The United States doesn’t “just print money” as many suggest. It sells bonds. In a vast, growing and vibrant economy selling bonds to finance the government is not in and of itself bad. What’s bad is government waste and how counterproductive it is to growth. Government spending does not stimulate the economy. Indeed, in many instances the economy would be better off if the government borrowed money and then created a huge bonfire and burned it all on Pennsylvania Avenue. That’s because much of government spending creates perverse incentives. The more money the government takes, the less there is for the private sector; over regulation and perverse incentives mushroom until the economy cannot keep up with all the borrowing. The government’s access to the private sectors’ hard-earned money is an aphrodisiac. It can’t stop spending. Sooner or later, it always happens, the government devalues the currency and then it is goodbye America and hello Venezuela."
