> The real constraint only kicks in when there’s too much spending relative to a limited supply of goods and services—in other words, when inflation spikes. And there’s been little sign of that in America for decades.
It amazes me that this can still be repeated with a straight face. The prices for housing, healthcare, and education have skyrocketed - many would say that the costs for these are the problem.
What is happening is that technological and economic progression are continually trying to lower the prices of consumer goods. Rather than let this natural deflation occur, the overt monetary policy is to inject new money in the consumer sector until average prices rise instead.
But this money isn't given directly to consumers as cash, but only supplied as loans through financing channels. People don't have an extra ten dollars to spend on groceries (which would make grocery prices rise), but an extra $1,000 to borrow and bid up financializable assets. The monthly payments to service the debt (sometimes called rent) are also mandatory, so their financial position becomes ever more dependent on continual income.