Inflation occurs when consumption exceeds production. The lethal end result of capitalism is wealth concentration. It’s always a problem but it becomes infinitely more so when government creates unlimited amounts of imaginary money because all that new money will likewise concentrate to the same small number of people. Right now, there’s almost 4 times as much money as there are real things to buy. Having more money than there are things causes inflation when ultra wealthy people try to turn their imagination into reality. For example, high housing prices are a direct result of people having so much money they don’t have anything else to do with it, so to get even more imaginary money, they buy assets to run up the value of their portfolio.
The simple solution is to not let this happen. Wealth concentration itself should be discouraged, but at the very least, denying a productive member of society their essential needs is a kind of extortion, and has to be stopped. First, don’t allow corporations to hold money but instead pay dividends, then tax the recipients at high progressive tax rates. Make it so that greed is discouraged and altruism is encouraged. This has worked in the past and didn’t get abandoned until the second half of the 20th-century. Also like the past, there needs to be progressive death taxes, but it won’t be easy because the one thing almost everyone agrees on is that they want to create a dynasty for their heirs, causing inflation for the rest of us.
