Top 5 Reasons Why The U.S. Government Benifits from Inflation:

The President appoints the Chairman of the Federal Reserve and the Federal Reserve has debased our currency since its creation. The U.S. Dollar has lost 23 percent of its purchasing power just over the last 10 years. How does the government benefit from the creation of all this currency? Here are the top 5 reason:

1. Government is able to spend without having to pay for it through taxes/appropriation.

2. Inflation lowers the real amount of Debt that the U.S. government currently has because there are now more dollars in circulation making the current debt amount relatively lower.

3. The economy has an illusion of growth because of the distortion of this Inflation; making the governments policies seem sound.

4. As inflation pushes taxpayers into higher tax brackets it allows the government to receive incressed tax revenue.

5. The government receivs higher capital gains tax amounts on rising assets which follow inflation up: housing, stocks, gold...