Mises Institute Inflation, Interventionism, and Intergenerational Resentment
Dec 12, 2025
Inflation doesn't just inflate prices; it disrupts wealth accumulation, especially for the young. This creates a rift between generations. State interventions create unequal castes, and political distractions lead to resentment among classes. The Cantillon Effect shows how inflation benefits early recipients while deepening divides. Younger generations often reject elder financial advice due to these harsh economic realities. Ultimately, inflation affects long-term perspectives and hampers moral education, complicating intergenerational relations.
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State Intervention Creates Caste Conflict
- State intervention creates caste-like divisions of net taxpayers and net tax consumers that fuel conflict.
- Joshua Mahorder explains this diverts energy from production into political rent-seeking and lowers living standards.
Inflation Produces Uneven Wealth Transfers
- Inflation is non-neutral and redistributes wealth unevenly through Cantillon-type effects benefiting early recipients.
- Mahorder notes inflation shifts income and wealth between social groups while it's in progress and after it ends.
Inflation Cultivates Debt And Moral Hazard
- Inflationary regimes create a debt culture, moral hazard, and class differentials that shape social habits.
- Mahorder cites Jeffrey Dengar to show these institutions intensify intergenerational criticism and resentment.
