I won't panic just yet. But let's hope we don't fall into stagflation!
If we suffer recassion combined with deflation, it's sometimes possible to just lower the national bank rates to 0% and print and spend counter-deflationary money. And if taxes are high already and the government is carrying no debt, it's sometimes possible for the government to just reduce taxes too.
In times of full structural employment, labour shortages and inflation, it's possible for the government to simply increase taxes, reduce government spending, or both, as a measure to just take money out of the economy.
But at times of stagflation, it's a double whammy. Then it becomes even more important than ever to use our money efficiently. Owing to inflation, the government must ensure that its revenue exceeds its spending in order to take money out of circulation to bring inflation under control. Yet owing to high unemployment, government must increase spending to stimulate the economy. The only way to increase spending while still ensuring that revenue exceeds spending is to make taxes shoot through the effin' roof, with the government taking some of the money out of circulation and using the rest of the money to provide training in whatever skills the new economy needs to get people back to work.
If stagflation hits, taxes will rise like we've never seen them rise before.