Inflation

Young people ages 20 to 55 are the workers and the consumers especially young families. For many, when they reach age 55, the kids are grown and the house is paid for and they are at their peak earning years, which means they have more disposable income that at any time in their lives and they are investing that money in retirement accounts. These accounts are in the stock market and this is capital available for investment. When these people reach age 65 the money is pulled from stocks and put in government securities which means it is no longer available for investment which means the cost of capital is rising. The demographics of the US show a large number of retirees, the baby boomers, so capital cost will rise just at the time when the country is investing in infrastructure in reshoring. This means rising interest rates which means rising inflation. This is the price that is paid for rapid expansion of the manufacturing base. Immigrants are needed as workers and consumers and the illegals that are here must be given work permits and new legal immigrants should be brought into the country.