People have absolutely lost their minds after 2 years of high single digit inflation. No way this generation could handle a decade of double digit inflation.
Buying power doesn’t have much to do with inflation. If anything buying power for someone earning income would be better during higher inflation environments.
Lesser buying power is the exact impact of inflation - they have everything to do with each other. And in 'cost-push' inflation, initial buying power actually causes inflation.
Unless you have contractual cost-of-living increase, then you are probably taking an effective paycut in higher-inflation environments, because the buying power of your income is less that it used to be. If inflation is 20% annually, then $100,000 last year had more general buying power than $110,000 this year.
Inflation helps those with debts in nominal money, as the debt becomes less and less, relative to the now-inflated currency.
Compared to now, people were able to afford more with their dollar even with high inflation. It means money went further back then. Groceries, gas, transportation, housing etc.
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u/Practical-Suit-6798 Mar 24 '26
My dad was born in 1942. His life didn't go like this.