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In America almost no one has pensions anymore. If you're lucky you have some money in a 401k or similar account that's gambling on the stock market always goin
by qbasic_forever 4y ago
In America almost no one has pensions anymore. If you're lucky you have some money in a 401k or similar account that's gambling on the stock market always going up. Nothing in retirement accounts is resistant to inflation.
Wages aren't going up as fast as price increases, plain and simple. People are facing something like a 40% increase in rent, groceries, etc. over the last couple years. No one is getting 20-40% raises (not without a major career change or advancement, and that doesn't scale to everyone).
- bruce511 4y agoFor the most part the stock market goes up, and part of this rise is caused by inflation. If the market overheats then there's a correction, but the long term trend is steadily upwards. Thus the stock market is a good hedge against inflation, but should be balanced with cash to guard against short-term fluctuations. There are certainly products and markets where supply does not meet demand. Housing in some local areas (SF etc) can be climbing steeply, whereas in other areas its flat or declining. This is not inflation. This is market-driven-economy.