Once upon a time, you had to work for months to save $1, but today you will be called a “redneck” in your back if you leave a $1 tip. And many modern billionaires are simply poor compared to the millionaires of the 19th century. How did it happen?
Purchasing power is how many goods and services can be obtained in exchange for a monetary unit. That is, what you can buy with a conventional 1 dollar, euro, etc.
Currencies can become cheaper or more expensive in relation to each other, but they all constantly lose their purchasing power for assets with a limited quantity 💸
This is not a terrible conspiracy, but the principle of operation of the current monetary system. States compete with each other in GDP growth, and the best drivers are inflation and money supply growth (printing press).
This is why rich people accumulate assets, not money. Because money is constantly becoming cheaper, thereby pushing up the value of assets.
📌 Repost so as not to lose