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Government Debt and Stagflation

Hi Mr. Roche,

I recently listened to your podcast feature with Ben Felix on The Rational Reminder Podcast and I found it very enlightening. You predicted the next 10-years will be nothing like the 1970s. From my basic understanding, the explosion in debt was a big reason for the decade of stagflation. How are we not to see this repeat as consumer prices have increased and CAPEX/OPEX has decreased?

Additionally, I like your view on government debt and how people often don't account for the asset side of it. However, from my understanding, every nation at some point in history inflated the debt away since it's the most politically palatable option but doing so results in currency debasement. Since raising taxes angers the wealthy, default/restructuring creates winners/losers, cutting government spending doesn't help politicians promise stuff, and foreign governments will lend us less since we likely cant service the debt, wouldn't government debt be crucial to manage/lower even if our average quality of life has increased over the years?

I apologize if I misinterpreted any of your statements. I am just genuinely curious as I learn more about economics. Thank you for your time! Much appreciated!

Hi @bangalore

I believe my latest post covers many of your questions.

How Worrisome is the Rise in Interest Rates?