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5 REALLY Stupid Things Politicians Said About the Inflation Catastrophe
Some of them are beyond foolish and almost a crime against future generations.
Inflation is a nasty phenomenon from nearly every angle*. It destroys your savings, erodes the purchasing power of your salary (ultimately making your time less and less worthy), and increases your expenses that are indexed (eg: rent).
Governments may benefit from inflation since it reduces debt and may also increase tax collection if the authorities don’t update the wage thresholds for tax exemption. There are also a few ways investors can benefit from it.
As a side effect, inflation often causes interest rates to go through the roof. This makes mortgages more expensive and kills business demand, leaving a lot of people without homes or jobs.
Increasing inflation was also one of the factors that eroded the confidence of the Russian people in Czar Nicholas II, resulting in the rise of the Bolshevik party and the murder of the czar and his family.
This is not a small deal. Inflation is the kind of thing that, out of control, may eat entire countries and civilizations alive.
Still, our elected officials (or those chosen by them) know so little about it, enough for a…
