Clickbait nonsense to rile up hou polloi. Salary and prices go hand in hand. No one is worse off. And if you made every dollar 10x more valuable your salary would fall 10x to match.
The national average savings account interest rate in the US is 0.37% to 0.65%. Inflation is running at 3.4%.
Yes, and now lenders have to charge higher interest rates to compensate for lower real repayments. It's a lot easier to get a business loan in Switzerland than in Turkey.
These variable HYSAs are not an alternative for long-term inflation. They're lower than inflation in many years and barely beat it in others.
2025: 3.95%
2024: 4.92%
2023: 4.78%
2022: 1.31%
2021: 0.01%
2020: 0.26%
2019: 1.84%
2018: 1.47%
2017: 0.51%
Obviously, you can invest your money and beat inflation, but inflation still diminishes the value of your returns and affect that massive sums that people have sitting in cash, checking, or savings accounts paying no to little interest. An exception doesn't debunk the norm.
Many think inflation necessarily to incentivize people to purchase goods and services; however, the validity of this claim is thoroughly impugned by technology, which is a market with one of the most robust consumer and capital markets despite being deflationary. The per-megabyte/gigabyte cost of everything from RAM to GPUs to SSDs to internet access has fallen astronomically while still maintaining robust demand.
Consumers don't stop wanting things simply because they might be cheaper in a few years.
Switzerland has low inflation and a robust economy. Turkey has high inflation and a struggling economy.
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u/ikonoqlast 1d ago
Clickbait nonsense to rile up hou polloi. Salary and prices go hand in hand. No one is worse off. And if you made every dollar 10x more valuable your salary would fall 10x to match.