'By the time I've saved for a house, the money's gone down in value by 20%, the house has gone up by 20% and I'm getting 40% of all my hard fought for additional earnings taken in tax.'
Thats the reality for ambitious British people in the early stages of their careers right now.
They want to work hard, earn money, save it and then reap the rewards. But inflation strips the incentive and gives them a forward looking dystopia.
The houses go up, the rents go up, the energy prices, the day to day, and the savings go down in purchasing power.
It is a direct result of the broken monetary system we've had since 1971 and excessive new money printing - the only direct cause of inflation.
Good money, that increases in value, improves incentives and improves society. Bad money, that can be inflated, distorts incentives and decays society.
So we've got a society incentivised to not save, think about today and hope that there's a fix in the future.
Weak money incentivises people to;
1. Spend it before it loses value (insta clout events)
2. Borrow because inflation eats the debt (finance the fancy motor)
3. Don't plan too far ahead (you can't - and that's miserable)
With a good money, increasing in value over time;
1. Saving pays, less wasted spend and people think 3+ years ahead
2. The house ambition becomes a matter of 'when' not 'if', the improvements become incremental
3. People give more of a shit; about their friends, family, town, business, country
The Gov and the BoE won't fix the 'cost of living crisis' (it was a conscious decision to double our money supply in recent years). They'll print more money, hand it out, probably emergency cut rates at some point when it's really hurting.
Short term relief (just like 2021-22 felt), and everyone consigned to long term inflation.
Nobody's going to fix it for you, it is down to the individual.
Study the problem and study money π π«‘β¬οΈ