⭐ Merited by LoyceV (2)
Ask your grandfather, or if you still have one, one of your great grandparents how much was a loaf of bread during the time when they were teenagers.
Wait for the answer.
That's inflation.
Wait for the answer.
That's inflation.
I wonder what kind of salary he was getting paid back then. $3,500 a year?
Looking only at purchasing power perverts things a bit. In terms of wages (how far your paycheck goes) it's not nearly as bad as people make out. In fact, technology and globalization has significantly lowered the price of some goods even after we account for inflation.
BUT it IS bad as people make out. In most regions of the world, the salaries of people doesn't keep up with the rising prices of goods and services. Why do you think more and more people go below the poverty line every year? The gap between rich and poor has been wider and wider.
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The real issue is whether you hold your savings in fiat money, which is obviously a terrible idea. Inflation is a tax on savings.
That's actually intentional. Keynesians use inflation as a disincentive against hoarding money, which in turn facilitates economic growth because people have to find ways to spend and invest their money before it loses value.
Intentional to control the monetary supply to make plebs like us poor, and make is believe that it is OK. Haha.