Economy & Banks

Help me make sense of this...

The government wants goods and services to become more affordable for its citizens. To achieve that, it needs to reduce inflation and slow down a "hot" economy. The lever they are pulling is reducing the disposable income of citizens by increasing tax revenues.

🤔

• If they do slow inflation in this way, surely things are still going to be unaffordable, since consumers have less disposable income?
  
• Perhaps the idea is that they can, at some later time, make changes to the tax system to 'give people the money back in their pockets'?
  
• Since nothing fundamental has changed, why would that not take us straight back to the current situation?
  
• Could someone explain the causal relationship between economic activity and inflation?
  
  

Everybody on the morning news just nodding their heads as though this makes perfect sense. It must just be me being thick.