What's wrong with a little inflation?

You obviously were not yet born unto this planet in the 1970s. Inflation was at a runaway pace and the economy was stagnant. The 1970s did not represent a booming economy with inflation, but rather an economy held down by stagflation (stagnant economy + inflation).

I remember mortgages with interest rates of 16% to 18% and credit card rates of 25% to 30%. Bank accounts were paying 10% to 12%, but that was below the rate of inflation, so you were losing money by keeping it in the bank.

When inflation is driving wage increases, they are not real wage increases, because when they are below the rate of inflation, you are effectively making less each year because the buying power of your money is less than the rising costs. Also, Nixon implemented a wage and price freeze to try to combat inflation, which was probably the dumbest thing he ever did. That meant no one was getting wage increases and retailers could not raise their prices to offset the rising cost of goods.

Inflation does not necessarily reduce the wealth of the 1%, because they don't keep their money in the bank. They are constantly looking for new areas to invest any cash they have in order to make more money. The 1% lose money when the stock market crashes or their investments go south. As long as there are good investments to make, they will always stay ahead of inflation. A good book to read about the way the wealthy think differently than the rest of us is "Rich Dad, Poor Dad" by Robert Kiyosaki. It's an easy read that shows you why the rich are rich and the rest of us are not.

No offense intended, but if you think inflation in the 1970s was a good thing, perhaps you need to take an economics class. This is my rant for the day.

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What's wrong with a little inflation?