Try saving for retirement. At 2% inflation (the target rate), after 20 years you'd lose 1 - (.98 ^ 20) = 33.2% of the purchasing power of your savings.
But right now, inflation is 7.5% year-over-year. And that's the official measure, which uses "owners' equivalent rent" based on a survey, instead of actual rent prices.
In the past 20 years (Jan 2002 - Jan 2022), the CPI went from 177.7 to 281.933, or a 58.6% increase. This means a 2.3% average inflation rate.
> Try saving for retirement. At 2% inflation (the target rate), after 20 years you'd lose 1 - (.98 ^ 20) = 33.2% of the purchasing power of your savings.
People shouldn't be holding dollars for retirement. People should be investing in productive assets. Its not good to have society's wealth locked up in paper notes or shiny metals hidden under a mattress or buried in the backyard.
This implies that your retirement savings are in cash, which is inaccurate for most folks. And certainly, I'd rather have it invested in the stock market than the wild fluctuations of the crypto market, especially with its uncertain withdrawal ability and complete inability to recover if someone steals it (which is, again, typically much easier with crypto than a brokerage).
But right now, inflation is 7.5% year-over-year. And that's the official measure, which uses "owners' equivalent rent" based on a survey, instead of actual rent prices.
In the past 20 years (Jan 2002 - Jan 2022), the CPI went from 177.7 to 281.933, or a 58.6% increase. This means a 2.3% average inflation rate.
https://tradingeconomics.com/united-states/inflation-cpi
https://www.investopedia.com/terms/o/owners-equivalent-rent....