[The_Reader_David]

Inflation is a huge tax that robs Americans of their savings. Well, yes and no. Negative real interest rates (which we now have) rob Americans (or anyone else in a country where they prevail) of their savings. Back in the hot inflation days of the early '80's, real interest rates (at least on CD's and money market accounts) were positive, so inflation wasn't sapping people's savings.

[greeneyes]

I lived through that period of time. The interest rates were higher, but insufficient to offset the rising cost of goods and services. The rates on CDs and savings were no better comparatively speaking. They still were negative when compared to galloping inflation.

Food and gasoline was especially challenging. Many people who had previously lived off their retirement income and a little interest, had to start liquidating more and more of their principle, just pay for necessities.

Plus wages did not keep pace either. Any time inflation gets to double digits, the majority of people will be negatively impacted. Especially the poor, and middle class.

It is relatively easy to invest money to keep ahead of low inflation rates, but not runaway inflation. Rates on CD’s and savings accounts are typically tied to Treasuries, and usually pay less than those securities.

Rates on CDs in general are not enough to offset the rate of inflation, regardless of whether that rate is single or double digit. You have to invest elsewhere for that. I sincerely hope we never have to face such inflation again. It was a heck of a lot more destructive than you have stated.