Government spend much money. Much money come from tax and borrowing. Let’s pretend there’s $100 in the economy. Gov’t takes 10% in tax. They spend $10, and the rest of the people share $90.

When next year comes, the economy grew to $110 and the government Collect $11 in tax, but actually decide to spend $20. Meaning they borrowed $9.

Year 3, economy grows to $150. Government gets $15 in tax, everyone feels “richer”, but government has to borrow to pay the $9 on last year, plus whatever new spending this year. Let’s say gov’t now owes $50.

So the next year! They create inflation and everyone has lots of money but can’t afford shit. Maybe economy balloons to stupidity like $500. Government takes $50, and pays off their debt. Or could.

In in this way, over time, inflation helps reduce the massive debt load incurred by governments because $1 is a lot easier to get in 2023 than it was in 2019.