Post
Topic
Board Economics
Merits 4 from 1 user
Re: Happy Birthday, Fed
by
Tytanowy Janusz
on 26/11/2024, 11:40:28 UTC
⭐ Merited by BlackHatCoiner (4)
The thing is, it's all just numbers and inflation wouldn't be an issue if salaries would keep up with the rest of the market. Alas...

Point being, inflation in itself is not the problem. It's salaries not keeping up with it. Though arguably that's probably by design.

it's the same as saying that a gang that steals women's purses is not a problem if they steal slowly enough for them to earn money for new ones. $100 put into your bank account in 2019 should be worth $100 in 2024. Its not. Its 81.5$ right now.

Imagine a scenario in which, through hard work, in 20 years, you managed to save $200,000 by saving an average of $10,000 per year. The dream house you want to buy is worth $250,000 today. You sould be able to afford it in 5 years right? No. In 5 years it will be worth $300,000, so you will be missing exactly as much as you are now ($50k)... You get the idea? The point of inflation is to keep you underwater. You have to borrow money from the bankster at interest, because saving money makes no sense.