Here's Why Inflation Isn't a Solution

Key points

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  High inflation reduces the relative value of government debt compared to borrowed amounts.

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  Income must exceed inflation for debt reduction to be economically beneficial.

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  Ten percent inflation over four years results in approximately a fifty percent price increase.

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  Few countries can expand income by more than fifty percent in four years.

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  Inflation reduces the value of the stock market which is worth fifty trillion dollars.

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  Private single-family homes are valued at another thirty-five trillion dollars.

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  The bond market holds approximately eleven trillion dollars in value.

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  Commercial real estate is valued at fifteen trillion dollars.

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  Farm real estate accounts for an additional five trillion dollars in value.

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  Inflation hurts all asset classes where Americans keep their savings.

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