Inflation: The thief that steals your money in broad daylight

Life, Money and Gratitude # 27 Inflation: The thief that steals your money in broad daylight

Inflation is invisible but you feel it all the time.

You go to the grocery store, there it is.

You go to the gas station, yup there too.

Looking for a new house or apartment, definitely there.

Where did inflation come from?

It almost entirely originates by the government borrowing money and printing money. It is much easier for a government to borrow money than cut spending or increase taxes. A politician can make all kinds of financial promises to their constituents (buy their votes) and all they have to do to get the money is vote to increase borrowing (debt ceiling).

Let's just agree that inflation exists, here are some things you should be aware of:

• Whatever the government claims inflation is, it is usually double or more

• Inflation steals your purchasing power

• Be mindful of keeping up with inflation (the hidden tax)

If you want to learn more about inflation take a look at this video by Thomas Sowell

Until next time, God Bless and be well.

Inflation: The thief that steals your money in broad daylight

M. Joseph Benric is the author of Graduation Gift , A Step-By-Step Guide to Financial Literacy for Young Adults

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