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by staticman2 558 days ago
The impact of inflation compounds. I won't bother looking up if that 5 cent claim is correct but I did quickly look up average inflation rate, and the average inflation rate from 1941 to 2017 is 3.5 percent per year. Which would mean the value of the currency would halve every 20 years, but that's just how compound interest works, it's not particularly remarkable or surprising.

Nobody complains when compound interest makes their stocks or bonds go up, I don't know why someone would suggest compound interest in inflation rates is some sort of awful social issue.