While the United States is ostensibly not at war with anyone, our government is spending taxpayers’ money as if it were.
This year, the budget for the U.S. Department of Defense is $844 billion. The United States spends nearly three times more on defense than does China and 10 times more than does Russia. At the same time, the depletion of U.S. military stockpiles and other reserves is accelerating through multiple conflicts such as in Ukraine and the Middle East. The defense contractors, their shareholders, and bought politicians benefit, but who pays? In the end, it is the American taxpayer, who never voted to send their hard-earned tax dollars abroad or to have their militaries engage in wars in all but name, that foots the bill. These citizens are paying twice: first in their tax dollars, and second, and most perniciously, in their diminished purchasing power and real (after inflation) wealth.
This is taxation without representation, in that these decisions are made without appropriate congressional oversight.
Wars are always inflationary.
This is a rule without exception.
We will continue to see high inflation in the United States to the extent these current engagements remain unchecked or others are allowed to mushroom from them.
When examples are given of runaway inflation, the hyperinflation of Weimar Germany following the First World War is the most often cited of the twentieth century. While it certainly was among the worst suffering nations, Germany was not alone. Every European country engaged in the continental war suffered massive inflation. When Germany entered the war in August 1914, the currency stood at 4.2 Reichsmarks to one U.S. dollar. In the wake of war and its aftermath, the German currency depreciated to a near infinite level of 4.2 trillion Reichsmarks to the U.S. dollar in December 1923, when a new currency was introduced, and hyperinflation eventually brought to heel. All of which came at great political and social cost.
Russia, like Germany, saw its currency become worthless and its government violently overthrown.
Other belligerents, including Great Britain, France, Austria, and Hungary saw prices double or triple and their currencies substantially devalue in dollar terms.