But people should be able to save. So that they can buy a house or apartment for themselves and their family. Without having to take up a loan to do so.
In other words, we're looking at someone with a few hundred thousand dollars, held for a few years. At which point, what's stopping them from keeping the money in an index fund, instead of under the proverbial mattress?
Also, taking a mortgage is a totally normal thing to do when buying a house, it will give you years of enjoying your home ownership, and in this case inflation actually works for you!
Risk of principal loss.
If everyone saves, the economy will collapse. Every dollar you save is a dollar that someone else doesn't earn.
In an inflationary environment, people can still save by buying equities.
This has tax and timing implications... But it's still possible.
> Without having to take up a loan to do so.
The existence of 25, 30, 35 year mortgages driving housing prices into the stratosphere is a separate problem, but not one you're ever going to unwind without having existing mortgage holders stringing you up from a lamp post.
That's a completely separate issue to inflation.
Where is the plan to make billionaires spend all their savings? That’s the money I personally didn’t earn!
Or is it saving for them, nothing for me?