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Though this is intuitive it's not really true in a real sense because it's trivially easy to avoid this "tax". Any asset -- down to a humble CD -- will beat inf
by thehappypm 6y ago
Though this is intuitive it's not really true in a real sense because it's trivially easy to avoid this "tax". Any asset -- down to a humble CD -- will beat inflation. However, assets increasing in value also increases tax revenue due to capital gains!
- mandelbrotwurst 6y ago1 year CD rates are currently about .65% in the US - well below inflation even if you’re talking Core CPI only.
- thehappypm 6y agoJust looked and yeah, this is not a good moment for CDs (or high-yield savings accounts). I used to get over 1% from my Ally bank savings account. I suppose you can't beat inflation with CDs or savings accounts right now, though in a higher-interest environment you certainly could.
- mandelbrotwurst 6y ago> in a higher-interest environment you certainly could Maybe, maybe not - it's possible for interest rates to be high and inflation to be even higher (stagflation).