Article Image

IPFS News Link • Inflation

The Inflation Tax Is Lowering Our Standard of Living

• SchiffGold

And of course, defined correctly – as an increase in the money supply – there is no denying inflation is rampant. We saw a record increase in the money supply last year. The only time that even comes close was the stagflationary period of the 1970s.

But what does this really mean for you and me?

As Peter explained during a talk for the Virtual Money Show, inflation is really a tax.  Economist Karl-Friedrich Israel recently broke down data that show how this form of taxation has impacted Germans in an article published by the Mises Wire.

Officially, German inflation has been tame. As measured by official government metrics, inflation has averaged about 1.5% per year. That's below the "target" of 2% mainstream economists claim is good for the economy. Inflation reached its highest peak in 2008, coming in at 2.8%. Just one year later, it hit a low of only 0.2%. Last year saw a negative inflation print during certain months and it ended up 0.4% on the year.