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I'm not sure who needs to know this... but... Inflation is a **good** thing when it occurs at a reasonably slow pace over time. It is only a bad thing when it occurs quickly (hyperinflation) or when factors cause a feedback loop where the inflation continually accelerates quickly reaching hyperinflation.
Inflation means as long as you arent hoarding cash (which no one should do) your investments are growing faster
@freemo
always affects the guy who finally 'saved' 5k or 10k, hopes to improve his life. Not able to invest in value generating assets that appreciate since it is too small of an amount, and he is not experienced enough to know how. So it sits in his bank while he tries to build it, not knowing that each year the central bank is stripping 5% or 10% of its value. After 10 years of trying to increase his nest egg it still only has a fraction of the purchasing power it once had.
An outright crime
That makes no sense.. for starters if you saved 5K, 10K or any amount it wont be significantly effected by inflation unless you hold onto it for decades, which is a pretty irresponsible way to save for retirement or long-term.
Second, the idea that 5k or 10k is too little to invest in value generating assets make no sense either. Even an extremely safe mutual fund is value generating and typically many orders of magnitude beyond loss due to inflation. Moreover for most mutual funds you can invest in it in rather small increments (100$ or even less). So no reason not to do this.
In fact the vast majority of middle class do exactly this. Little old ladies in nursing homes arent living off saving from 50 years ago, they are living off their 401K or roth IRA. You will never hear your banker who advices you on long-term savings for retirement or other purposes to keep large amounts of money as cash for long periods of time.
Literally inflation is helping exactly the type of person you describe, people with 5K or 10K saving for retirement in a retirement fun (which is usually roth IRA or 401K).
