> running equivalent surpluses during 'the good times.'
This is because government debt isn't a zero-sum game.
Especially since our currency is no longer gold standard/backed (partly because of the Great Depression).
This is because government debt isn't a zero-sum game.
Especially since our currency is no longer gold standard/backed (partly because of the Great Depression).
It is also exactly the year inflation took off like a rocket - see the "Cumulative Inflation" graph. And the standard of living for the middle class (at least in the US) began to stagnate (up to this day).
https://inflationdata.com/Inflation/Inflation/Cumulative_Inf...
Switzerland was on the gold standard until 1999. Since abandoning the gold standard, inflation in Switzerland has been minimal.
Clearly abandoning the gold standard does not necessarily lead to inflation. You haven't even shown a correlation here, much less causation.
I was not trying to prove causation. There appears to be correlation, but obviously other factors (like government spending) are at play