If you can understand inflation, you have a shot at understanding how the world works, and where it’s heading economically.
Unfortunately, inflation is almost never taught properly in schools, if at all, and it’s mischaracterized in the press, over and over again.
They all keep talking about inflation as “rising prices” when it’s actually “falling money.” That is money that’s losing its purchasing power.
Once you can make this mental flip – from rising prices to falling money – you are in a better position to resolve what’s actually happening in the world.
And that thing that’s happening is the same thing it’s always been; people in power preferring to steal from everyone quietly and mischievously rather than having to be direct and explain themselves and why they want your money handed over to their latest goobermint boondoggle.
Because that’s what inflation is – a hidden tax.
It steals from the many to pay for the errors of the few. It secretly and silently removes purchasing power from everybody’s savings every single day.
It’s the most regressive tax there is and, based on that, you’d think that various champions of the poor and the downtrodden would be up in arms about the true source of all that regressive hardship. But they are not. They are nearly stone silent on the matter which means their true aims and concerns are not as stated.
Might as well be a gardener who cries about the effect of a drought on their plants but refuses to turn on the hose to water them. Maybe it’s not actually about the plants after all…
This is a companion discussion topic for the original entry at https://peakprosperity.com/crash-course-chapter-4-inflation/