The Invisible Levy Called Inflation Tax: If Inflation Stays, Will PB-tan Turn Black-Haired? [Ashihara Nakatsu Kingdom Story]

*This story is a work of fiction. It has no relation to any real countries, systems, organizations, or people.

Suddenly, it dawned on me.

In a corner of the kingdom, a scholar muttered, "Could it be that if Miss Inflation stays here like this... PB-tan might end up with black hair..."
One of the Fluffy Corps members turned around in surprise.
"What do you mean by that?"

The Mechanism of the Scales

The debt plate of the balance sheet holds the outstanding balance of government bonds.
That amount, in nominal terms, never changes.
However, if prices continue to rise gradually, the story changes a little.
The kingdom's overall economic scale (nominal GDP) and tax revenue also grow in nominal terms along with the rise in prices and wages.
If the outstanding balance of government bonds itself does not increase, the debt plate can sometimes look relatively lighter when compared to the kingdom as a whole.
"The longer inflation stays, the lighter the debt plate becomes...?"
The scholar started to say this, then clamped their mouth shut.
"That is a crude way of putting it. If interest rates rise, interest payments will also increase, and if the outstanding balance of government bonds continues to grow at a faster pace than economic growth, that is a different story."
Several members of the Fluffy Corps stared silently at the scales.

The Fluffy Corps' Dilemma

For the Fluffy Corps, who believe in black-hair supremacy, the debt plate becoming lighter should have been something they desired.
"Then, shouldn't we welcome Miss Inflation?"
When a young member said this, the elder shook their head.
"That is not the case."
What is happening behind the scenes as the debt plate gets lighter?
The real value of the kingdom's citizens' cash and deposits is being eroded.
Even if the face value of their salaries doesn't change, what they can buy is steadily decreasing.
This was an invisible burden that did not take the form of a tax.

"In other words... does this mean that PB-tan might turn black-haired (PB reaching a surplus) through an invisible levy collected from the citizens?"
The elder nodded slowly.
"That is why this is not something to be celebrated without reservation."

A Story Already Seen Across the Sea

In the Land of the Free, commoners who have lived with Miss Inflation for many years leaked this:
"We've been experiencing that for a long time now."
Those with assets are more likely to benefit from rising stock and real estate prices. People who bought homes or equipment with debt may also find the real burden of that debt lightened.
On the other hand, those who only hold cash and deposits have their real purchasing power gradually whittled away.
Even with the same inflation, the way it is perceived differs completely depending on whether one holds assets or not.
Even so, more than hair color...
PB-tan stared at her own red hair in the mirror.
"There was a way to turn black-haired."
"But..."
"If the price for that is everyone's livelihood."
"I think I'm fine just the way I am."
No one in the Fluffy Corps could answer.
A citizen's remark: "Something feels different from what I expected..." "If life doesn't get easier even after turning black-haired, isn't it meaningless?"

Author's Afterword

This episode depicted the phenomenon called "inflation tax," where inflation lightens the real burden of government debt while eroding the purchasing power of those holding cash and deposits. It is not a story about one side being right or wrong, but rather a depiction of the structure itself, where the way benefits and burdens are received changes depending on who holds assets and how.