The federal government’s regulatory involvement in the economy has grown greatly since the 1910s. The incongruities of fiscal politics, though, resembled those of today. A Democratic administration tolerated massive borrowing—to meet wartime needs then and a pandemic emergency recently—while Republicans condemned as inflationary actions they might well have taken themselves (and did during Trump’s administration). Unlike in Wilson’s era, today’s Federal Reserve Board bears much of the responsibility for curbing inflation. Yet politically, the president’s administration still faces most of the criticism when consumer prices have risen sharply. Then and now, the budgetary pressures of competing policy needs and the sheer difficulty of lowering prices virtually guarantee voter discontent.
