Inflation has a slow destructive impact on your purchasing power. Most people don’t think twice about inflation. They just assume that the price of goods will go up because that is the way it has always been. Yet that is not true. The type of inflation we are seeing is debt supported inflation which has made the cost of normally affordable goods inaccessible for most Americans. It has also been a big reason for why retail is getting severely hit. Yet where does most of your money go? For most households it is housing and most Americans are too broke to afford a home. For younger Americans the biggest expense is college tuition. And inflation in tuition has gone completely out of control because debt has been disconnect from ability to pay (does this bring back memories of the housing bubble?). There is an inflation nightmare going on and you only have to look back to 2000.
The four horsemen of inflation
There are four major issues that are impacting inflation and hitting your pocketbook. You might not feel it immediately but when wages are stagnant, it does make a big impact. So it might be useful to look at the various segments that are hurting your pocketbook.
This post was published at MyBudget360 on June 15, 2017.