I first want to start off by saying that I am deeply saddened by how our government, whether Republican or Democrat has stolen and continue to steals the money you work so hard to make. In addition to informing you of these problems, I will also tell you how to fix them. Remember, the government can only take advantage of you if you let them.
Inflation simply put is the cheapening of the money you hold in your pocket. A basic way to understand this is associate your money with a certain product. For example, lets say you have $10,000 in your bank account and you don't touch it for a year and the inflation rate was 3% for that year.
Next year, your $10,000 will buy $9,700 worth of stuff. Why? because the value of your money went down by 3%. This is one of the ways the government steals from you without giving you any extra representation. If you want to see the seriousness of this, just add some zeros to the $10,000 example and you will get the point.
How can you fix this? Do not spend money you don't need to spend! I am not talking about the kind of "need" like how you "need" the new version of a cell phone. If you hold back your spending, the economy as a whole will slow down and so will inflation.
The economy will transition from an inflationary economy to a deflationary economy. This means that the money you work hard for will buy more than it did last year. This is definitely in your favor, not the governments. Which is why you hear on the news how the government tries to prevent deflation.
Save your money and buy interest bearing bonds or invest in real estate or stocks, but don't let your money sit in an account because it will deplete to nothing.
