In point of fact, inflation is not necessarily a given in societies, but we do find that in virtually all modern societies, each of those societies suffers from inflation, some of which can be exceedingly high and can thereby lead to the inconvenient demise of that currency. The problem with inflation when it comes to, for instance, dollars, is that those that simply are holding onto their dollars or are trying to spend them, find that their dollar purchases ever less products or services over time, which thereby means that the value of their dollars have depreciated. This can be a real burden for people because it indicates that in order to maintain their purchasing power they are going to need to earn more money or else find investments that will provide them with a meaningful positive return or obtain that combination, because without such, the worth of their dollar assets becomes ever less.
So too, another way of looking at dollars that are depreciating is the fact that this is essentially a tax upon money. That is to say, just like we have to pay a sales tax or an income tax, we are, in essence, paying a dollar tax, because the dollars that we have are ever becoming less valuable. Furthermore, it’s disappointing that this government which states that our dollars are backed up by the full faith and credit of this nation, apparently can’t keep its house in order because inflation is both persistent and consistent, in which, some of the time, that inflation rate reaches even double digits, which definitely is a high tax for citizens to pay, of which, those very same citizens, seemingly have no recourse to stop inflation because it is essentially out of their hands.
One would think that this government rather than mouthing words about how they are concerned about inflation and thereby desiring to do something of substance to contain inflation, still can’t apparently come up with any policies that do that very thing, which is why, the value of a dollar has declined precipitously since this nation went off the gold standard and replaced backing dollars with specie, with backing dollars instead with just words.
Governments, the world over, are always looking for creative ways to tax their constituents and when one of those ways is the depreciation of the currency, this thus will always favor those in the know over those that don’t really know. Furthermore, that dollar taxation really isn’t fair to the general public because it eats into their wealth, their income, and their purchasing power, without providing them with any corresponding benefit. Additionally, most people are busy taking care of their necessary things, which means that their plate is already full and having to deal with the depreciation of the dollars in their hands, which they have labored hard to obtain, is just one more problem that serves to make their life more challenging, and one more tax to pay, without seeming to have much representation about it.