"The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists"

Ernest Hemingway’s observation offers a profound critique of the ways in which nations, especially those facing internal mismanagement, attempt to resolve their difficulties by resorting to measures that ultimately worsen their predicament. The deliberate inflation of currency is often employed by governments seeking to navigate economic crises without confronting the root causes of their fiscal irresponsibility. By printing more money, temporary economic stimulation occurs: debts are easier to pay with devalued currency, prices rise, and at first, a sense of prosperity can pervade society. However, this prosperity is illusory. Inflation erodes savings, destroys trust in currency, and leads to widespread economic uncertainty and instability. The initial bloom of relief quickly fades as the deeper consequences of inflation, poverty, social unrest, and the breakdown of economic order, take hold.

War, the second panacea, is presented as another tool frequently reached for by political and economic opportunists. The outbreak of war can serve as a distraction from domestic troubles, uniting populations in the face of a common enemy and stimulating economies through increased production and demand for resources. The sense of purpose and unity, as well as the economic boost from wartime industries, can feel like genuine recovery or advancement. Yet, the devastation of war, the human and material costs, and the societal trauma it leaves are forms of permanent ruin that linger long after the fragile prosperity has vanished.

Hemingway’s sardonic use of “panacea” underscores the fallacy of viewing these strategies as cures. They are not true solutions, but rather forms of escapism or short-sighted management, attractive to those in power for the opportunities they create for personal gain or political survival. Political and economic opportunists exploit such crises for their own advantage, heedless of the lasting damage done to the nation. Hemingway’s message is a sober warning: attempts to cover up systemic failure with quick fixes not only postpone genuine solutions but also pave the way for deeper, enduring crises.