It is a salary cut because the dollar is worth less every year. It's already lost well over 99% of it's value in the last 200 years (a time when the average ho

It is a salary cut because the dollar is worth less every year. It's already lost well over 99% of it's value in the last 200 years (a time when the average house cost 800$). So, if inflation goes up by 10%, your salary is being cut by almost 10%.