Image credit. A question of which system is better adapted to which task.
Law of Markets argues:
With QE we are not talking about troubled assets or dealing with an emergency. It is just straight out inflation.
Second, inflation has now come to mean rises in prices when once it meant printing money. The Keynesians switched the terminology to movements in prices in the 1930s so that their policies would no longer be immediately described as inflation (discussed in the 2nd ed of my Free Market Economics [FME2] pages 406-408). But let’s not quibble about this. What ought to be understood instead is that the effect of inflating the money supply to fund public spending has a number of possible effects of which higher prices is only one. Without militant unions and continuous labour market pressures to push wages up, inflation in the form of price increases is subdued. And whatever else may be the case at the moment pretty well everywhere, only those in very protected environments are in the mood to be pushing for significantly higher wages that would put their jobs at risk.
The real issue is that the way in which the re-direction of expenditure to the public sector is and will continue to manifest itself in a crumbling capital stock (see FME2: p410). The economy of the United States is falling to bits. It will take a longish time since it has a massive asset base but it is being eroded fast enough, which is evident in the median income data and elsewhere.
Is this view in conflict with what Arnold Kling - in The Segmented Wealth of Nations (see especially the paragraph at the bottom of the post) - identifies as the sources of crisis and contemporary economic change? I don't think so.
For a reminder why shifting toward public sector provision of goods and services is a decision for high cost production, take a look at Government - High-Cost Producer.