You are right, inflation is an insidious erosion of purchasing power. Its surprising that few people seem to realize the destructive compounded effect of it.
Because of inflationary pressures most people are seeing their disposable income steadily decline. The rising costs of the necessities of life (food, shelter, utilities, insurance, transport, health care, etc) are chipping away what little discretionary income is left over for purchasing other things. A very bad situation for a consume driven economy.
Totally agree with your assessment of the decimation of the spending reserves of the American taxpayers. Can see all around my environs the diminishing standard of living for all income classes. Probably not the correct forum to bring this up, but I was somewhat disappointed to read our church bulletin front page this past Sunday advising parishioners to heed their 10% tithes. Then went on to quote scripture advising this be done. With so many people struggling just to afford the bare essentials, it would seem to me that the church could search for ways to trim their budget (such as so much sent to foreign charities and nations) and be thankful for the tithes they receive in light of very trying financial straits for so many people.
It’s not just our government, financial institutions which are mismanaging others’ money — this is happening everywhere.
People are unwilling to do deal with the short term pain of rising interest rates. But Wealth lost through inflation is permanent.