Why does money lose its value and how to fix it?
There was a time when you had to work for months to save $1 and today's billionaires are less wealthy than the millionaires of the 19th century. For what ?
Purchasing power represents the quantity of goods and services that can be obtained in exchange for a monetary unit. In other words, it's what you can buy with 1 dollar, 1 euro, etc.
Currencies can depreciate or appreciate against each other, but they all constantly lose purchasing power against limited supply assets 💸
This is the operating principle of the current monetary system. States compete to stimulate their GDP growth, and the main drivers of this growth are inflation and the expansion of the money supply.
What do the rich do? They accumulate assets rather than cash. This is because money is constantly losing its value, which drives up the price of assets.