inflation is caused by one thing and one thing only
MONEY SUPPLY
you truly are a keynesian. Full employment doesnt cause inflation. We had full employment in the late 1990s with disinflation.
Ahhh..LBJ did raise taxes and hot got even more inflation. Raising taxes increases inflation, lowering taxes reduces inflation.
If the 1970 economy had been deflated like the American economy of 1940 there would have been no inflation.
But piling Medicare on top of Vietnam on top of a full employment economy sent demand inflation surging throughout the economy. The problem with limited war is that major war comes with demand dampening measures to prevent inflation (buy war bonds, rationing, etc). LBJ couldn't politically afford to do any of those things.
Tell me, does the money supply magically increase itself ? Or does it increase because the government is taking on massive new responsibilities and is financing it with the printing press ?