Ben Sinclair

January 29, 2023

Inflation is a hidden tax

If you stop and think about it, with the rise of technology, shouldn’t things be getting cheaper, not more expensive?

Take computers for example, although they aren’t getting a lot cheaper, the components inside are far superior each year. If you compare the price to the power inside modern computers, the overall cost is getting cheaper.

Since the world reserve currency is the US dollar and that the US dollar is not backed by anything but the “goodwill of the US government”, the US government simply prints more of it to pay debt, fund the military and so on. There’s not a lot of accountability.

Inflation is a direct result in the increased money supply. Put another way, inflation is a reduction in purchasing power. Things aren’t costing more, the money is just worth less.

Inflation is a hidden tax because as the government prints more money, they are reducing the purchasing power of the dollars that their citizens hold. Rather than tax citizens more openly, causing an uproar, citizens are taxed in a hidden way through inflation of the money supply.

Want to know why property went gangbusters in 2021? A direct result of the increase in the money supply paired with cheap debt.

Hard assets like property, gold, Bitcoin, stocks should go up in value as they generally keep up with inflation. But if you have money sitting in the bank over many years, it’s going to buy less.

As Robert Kiyosaki says, “savers are losers”.


About Ben Sinclair

Hey! I'm Ben. I’m a Christian (a child of God), husband, father, son, friend and I work at I'm passionate about Jesus, finance and technology. These writings are for me, however, maybe they’ll be interesting to others. Thanks for stopping by!