In 2020, as the U.S. economy came to a standstill, policymakers responded with unprecedented stimulus measures — approximately $6 trillion in newly created money — in an effort to stabilize markets and sustain consumer demand.
Initially, this liquidity injection appeared to avert economic collapse. Financial markets recovered, businesses reopened, and short-term confidence was restored. Yet beneath the surface, deeper structural issues began to take shape.
For much of modern history, economic discipline dictated that inefficient enterprises were allowed to fail, enabling capital to flow toward more productive uses. However, since the 1980s, repeated government interventions — from the savings and loan crisis to the 2008 financial collapse — have increasingly blurred the line between market correction and policy rescue.
The long-term costs of this approach are now becoming clear:
Persistent inflationary pressures
Asset price distortions and artificial growth
Escalating national debt and fiscal dependency
Rather than confronting the consequences of prolonged monetary expansion, many analysts have attributed rising prices to supply chain disruptions or corporate behavior — explanations that overlook the fundamental issue of monetary dilution.
The reality is that printing money does not generate real wealth; it merely redistributes purchasing power and defers economic pain. The effects often materialize later, as inflation erodes savings and debt obligations compound.
What was intended as a rescue in 2020 may, in hindsight, represent a reset purchased on borrowed time.
Source: Mises Institute
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