This idea that we can enjoy virtually unlimited spending when interest rates are so low ignores the risk that all that debt may need to be refinanced at a higher rate down the road.

As I’ve said before, the reason we don’t have inflation is because we’ve relied on monetary policy to support our economy. The money is going into financial markets, not labor markets, creating the huge chasm we see between working families and Wall Street.

Biden’s welcome shift to fiscal support will help address this inequity, but will also increase inflation risk. As more money reaches consumers, we will likely see increased demand and higher prices, which in turn will create pressure to raise rates.

So this is the box we find ourselves in. Shift to fiscal support to help Main Street, but risk consumer price inflation, which will make it more expensive for government to fund the very programs Main Street needs.