If the Democrats wish to use fiscal policy to reduce inflation, they will have to cut or freeze spending while raising taxes on Americans who have disposable income and some elasticity in their demand. Naturally, it would be destructive to increase taxes on the poor, who are bearing the brunt of inflation, and it would be futile to raise taxes on the rich, because doing so would not materially affect their behavior. But, if this is the road the party has chosen, taxing the middle and upper middle classes could plausibly help reduce demand.

So, of course, the Democrats are hellbent on the opposite course. Inexplicably, President Biden is still hoping to increase the discretionary income of middle- and upper-middle-class Americans by writing at least $10,000 off the student-loan debt they owe taxpayers. That is an inflationary policy. At the same time, Senate Democrats have rekindled reconciliation talks, and seem currently to be seeking a deal that combines one inflationary policy with another. Most of the Democratic caucus still want a trillion dollars or more in new spending. That would be inflationary. Senator Joe Manchin is not as interested in this as his colleagues, but he has signaled a willingness to go along with it if he can couple the spending with an increase in the corporate tax rate that would, by definition, lead to an increase in consumer prices. That, too, would be inflationary. Even now, the Democrats have not got the message.