Why is the wealth of the middle class eroding?

According to Oxfam International, the rich are getting richer and the poor are becoming more poor.

The middle class is struggling in many countries as their wealth is eroding.

Why is the middle class becoming agitated and dissatisfied?

It is due to the problem of inflation.

Inflation has been called the silent killer by many economists.

Wrong financial decisions lead to poverty.

For example, if the middle class decides to put all their savings in a savings account instead of investing in high-yield investments such as real estate or the stock market, then wealth erosion takes place.

In other words, investments such as cars or savings accounts are depreciating assets whereas the stock market and real estate are mostly appreciating assets.

Consider this: the average return of S&P over the last ten years has been more than 12% whereas savings account only provides an average interest of less than 1% in the USA.

Investment in a savings account just isn't able to catch up to the inflation rate.

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Jamie Larson