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.
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.
We need to get more specific. I'm assuming you're talking about developing or emerging markets?
In North America, what you're saying has been true for the last ~20 years. Wages have stagnated and diverged from GDP growth since 2000 or so. That certainly was not true in the preceding generations going back to the 1920s or whatever, which is what I was referring to.
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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 us believe that it is OK. Haha.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.
I don't think so. It's an attempt to prevent depressions and curb recessions. Fed policy may be misguided and may end up imploding the economy one day but I don't buy into those kinds of conspiracy theories. It's pretty well known if you have savings, you shouldn't keep it in cash. That's the whole point of retirement accounts; they get invested into the market.