Government debt as a share of the U.S. economy is falling. This must mean President Joe Biden's administration and Congress are practicing fiscal responsibility, right? No, it doesn't. The main driver behind the reduction is inflation—inflation that politicians in Washington created with their irresponsible spending and refusal to engage in austerity after the COVID-19 crisis.
Misleading ideas like this are another reason why we must keep talking about fiscal policy. The missing debt is nothing to celebrate when it's due to inflation, something especially harmful for poorer Americans who see their living standards erode.
