...higher inflation expectations.
A lot of the federal debt can be “paid down” simply by monetizing it. Looks like that’s what we’re in for. Get your bills paid and acquire “stuff” while it’s still cheap.
From a politician’s point of view, the least painful way to pay down the debt is by inflating the dollar. But they had better be careful. Because this also makes it more expensive for them to borrow new money.
Labor costs could go down further in many industries with increased mechanization. It is hard to have sustained inflation without wage increases.
How are people going to be incentivized to save for their futures if money doesn't compound? Besides which, the lower interest rates under George 2 were supposed to be temporary, so the gov could pay off debt. Instead, the DC Idiots spent with no restraint.