Source: Ludwig von Mises Institute
by Michael Dioguardi
“In modern political debate, rising costs of living are usually blamed on markets. Housing is ‘unaffordable.’ Healthcare is ‘broken.’ Education is ‘too expensive.’ The proposed remedy is almost always the same: more public spending, more intervention, more emergency programs funded by government credit. But what if the affordability crisis is not a failure of markets at all? What if it is the predictable outcome of how modern governments finance themselves? From an Austrian perspective, the affordability crisis is best understood as a monetary and institutional phenomenon. Since the early 1970s, governments like the United States have operated under a system of discretionary sovereign credit, where spending is no longer meaningfully constrained by taxation or savings.” (01/12/26)
https://mises.org/power-market/sovereign-credit-affordability-and-crisis-ratchet