From the perspective of social welfare maximization, we see the government doing all the wrong things. But what looks like failures from this perspective may not look like failures to the government itself. It may see successes because, if you think about it, economic instability expands the role of government. Inflation produces revenues for the expansion of government programs. According to the Joint Committee on Taxation, for every 1 percent rise in the price level, the government’s revenues go up by 1.6 percent. So, inflation is welcomed by people in government who want to spend more.