In the “old” days, a worker would receive payment in gold or silver, and they could save it, or loan it, and at least receive back the same value of their savings, which is the sum of their unspent labor.
Now the Federal Reserve targets a 2% inflation figure (frauds and liars will tell you the Fed doesn’t create money or manipulate all interest rates), so Jerome Powell is telling you it is their stated policy to take half of the value of your savings in 30 years. We can debate if real consumer price inflation is much higher than that.
So that leads most Americans and their pensions into the “financial markets” and speculative ventures over which they have almost no understanding, and zero control.
“In the “old” days, a worker would receive payment in gold or silver, and they could save it, or loan it, and at least receive back the same value of their savings, which is the sum of their unspent labor.
Now the Federal Reserve targets a 2% inflation figure”
I put my savings into good stocks with >2% dividends. Getting more back than lost to inflation.
“So that leads most Americans and their pensions into the “financial markets” and speculative ventures over which they have almost no understanding, and zero control.”
Very few go into speculative adventures. Most go for indexed funds and ETF’s.