The administration knows this, and is trying to get away with the same economic sleight-of-hand that devoured the savings of an entire generation back in the 70s with years of inflation. The Viet Nam war was paid for out of the savings accounts of little old widow ladies on fixed incomes.
This time it will be worse, since we won't be able to produce our way out of the fix we're in, having sold all our tools and having no Americans left who actually know how to design and build anything.