One irony of inflation is that while it’s bad for working Americans, it’s great for the government. Tax revenues soar as nominal profits and incomes rise, and for evidence simply look at the boom in state and local government coffers. They’ve rarely had it so good, but don’t expect them to be frugal spenders.

Overall state and local government receipts including federal aid were 23% above pre-pandemic levels in the third quarter through September thanks to Congress’s gusher of spending and the strong economic recovery, according to the Committee for a Responsible Federal Budget.