Inflation Is Theft, But We Don't Have to Be Victims

Inflation is theft. The loot isn’t just the lost dollar in your wallet or the rising price of your daily bread. It’s worse than that. By eroding the value of money, inflation also erodes our ability to plan for a better tomorrow. And while many try to complicate the causes of inflation, the reality is simple: it’s the result of reckless government policies — unchecked deficit spending and the endless expansion of the money supply.

Today, the signs are all around us. Political leaders succumb to short-term thinking, craftsmanship fades into planned obsolescence, and the social bonds that once connected us weaken. The gnawing anxiety that pervades modern life — the feeling that the game is rigged — goes beyond financial instability.

Yet, while these macroeconomic forces are out of our control, we are not powerless. There are steps we can take to shield ourselves from inflation’s impact. But first, we need to recognize the threat inflation poses — not just to our wealth but to the values that underpin a prosperous society.

The Erosion of Time Preference

At the heart of this decay lies a concept central to civilization’s progress: time preference. Our ability to delay gratification and sacrifice the present for the future has allowed societies to thrive. A low time preference — the willingness to plant trees whose shade we may never sit under — has driven humanity’s greatest achievements. It’s the force behind cathedrals built over centuries, educational systems designed for future generations, and environmental policies to preserve the planet for our descendants.

Inflation, however, is a corrosive agent on this forward-thinking orientation. As the future value of money becomes uncertain, so does the value of long-term investments — not just financial, but social and moral. When tomorrow’s rewards are constantly devalued, we question the worth of today’s sacrifices. In a world where the future is constantly eroded, how do we maintain our commitment to it?

Reckless Policies, Real Consequences

Make no mistake: inflation isn’t some mysterious economic phenomenon — it directly results from government mismanagement. By running deficits and printing money, governments create inflation. Whether through quantitative easing, stimulus spending, or the constant expansion of debt, these actions devalue currency and shift the burden to future generations.

Fiat currency — the paper money unbacked by tangible assets like gold or silver — is a tool in this process. It allows governments to print money unchecked, fueling inflation and eroding the value of every dollar you earn. This isn’t just economic mismanagement; it’s a transfer of wealth from ordinary citizens to the government and those closest to the money supply. And yet, in this environment of uncertainty, individuals can protect themselves — and thrive.

Why Investing Is the Key to Safeguarding Your Wealth

While government policies may continue to fuel inflation, you can take steps to protect your wealth. History has shown that in times of inflation, those who invest in appreciating assets often fare far better than those who hold cash or rely on savings alone. Investments in stocks, real estate, and commodities, for example, can potentially preserve your purchasing power and grow your wealth over time.

This isn’t about blind optimism or ignoring the seriousness of inflation’s consequences. It’s about recognizing that while inflation steals from those who do nothing, it can be defended through deliberate action.

Taking Control of Your Financial Future

Government policies may be reckless, but that doesn’t mean we have to be passive victims of inflation. By staying informed, taking a disciplined approach to investing, and focusing on long-term growth, you can guard your wealth against the erosion of purchasing power.

Inflation might be a thief, but you don’t have to be a primary victim. Just as the builders of cathedrals committed themselves to a future they couldn’t see, you, too, can take steps today to ensure that your wealth and legacy endure. You have the tools to fight back — through smart investing, thoughtful planning, and a commitment to the long term. Let inflation serve as a reminder that in times of uncertainty, proactive steps are not just advisable — they are essential.