“This allows entitlement spending to increase at rates that don’t even keep up with inflation over time, which means nobody gets a cut in their government hand-outs but eventually we’ll notice that a government check that used to pay the rent can barely even cover the cost of a can of dog food.”
Why is this a bad thing?
It's a bad thing if you are a Baby Boomer who acted responsibly by saving during your working years and who is now looking for a secure way to fund retirement. Dollar denominated investments are going to be hit very hard, with their purchasing value declining from year to year.
To the extent that the government does not simply print the dollars, businesses and other economic activity will have to be more heavily taxed, causing a reduction in such activities.
We know that the government will have to engage in some combination of these two approaches. Finding a way to maintain one's retirement security will involve trying to anticipate which way the government is headed.
I don't think it's such a bad thing at all!