Part 5/13:
The Hidden Impact of Inflation
Inflation has been nibbling away at the value of money for decades, and it ramped up significantly starting in the 1970s. Despite historical inflation being somewhat invisible to consumers during low periods, it continuously erodes the buying power of wages. As asset prices grow faster than incomes, it becomes harder for the average person to save, invest, and build wealth.
The Disparity in Asset Values and Investment Challenges
Investing is often touted as the primary route to wealth—yet asset prices, such as real estate and stocks, have risen much faster than wages. For instance:
Median home prices: From $28,300 to $346,000 (twelvefold increase).
Stock market (Dow Jones): From 900 points to over 34,000 (a 3,700% increase).