And as save money for retirement, the value of that dollar is constantly devaluing so that a $500K retirement today might be a $250K (or less) retirement amount if we compare 2016 dollars to 2036 dollars.
Let's ignore the issue that for poor people, retirement savings is not that huge an issue. Instead I'll point out that if your bills go up and your wages don't, you are not going to be able to accumulate any savings to inflate. So even the small amounts of inflation wipe out a person on an income that is fixed in real dollars.
Is the problem here inflation or the fact that with the teeny-tiny interest rates we currently have, it is difficult to save in a way that keeps pace with the current rather puny interest rate?
Inflation affects the cost of living which almost always outpaces annual raises.
That is indeed a problem. So why are wages so low when productivity is at an all time high? When there is more wealth being created than ever before?
Edited by NoNukes, : No reason given.
Edited by NoNukes, : No reason given.
Under a government which imprisons any unjustly, the true place for a just man is also in prison. Thoreau: Civil Disobedience (1846)
History will have to record that the greatest tragedy of this period of social transition was not the strident clamor of the bad people, but the appalling silence of the good people. Martin Luther King
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