Controlling inflation is only part of the problem. The other part, in some countries, is that average wages are in decline. The middle class is being eroded. In the US, that has been an ongoing problem for years, as globalization has become the norm. Good paying middle class jobs were gradually eliminated as production facilities were outsourced to places like China. The system is not static, it's dynamic. As for pensions being unsustainable because of inflation? Hardly. Inflation is just what governments like, especially to the extent that pensions are fixed or adjusted more slowly than real inflation. Bit by bit, the value of pensions are eroded and bit by bit, the governments have an easier time footing the bill as inflation increases. Anyway, I feel sorry for the guys from the UK on a fixed pension with no increases once you move overseas. I'm from the US and don't have that problem. Every year, I get an increase, based on the CPI back home, and yet in Thailand, I haven't noticed much real inflation. Sure, there's a little, but nothing much I've noticed.
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