> It would be bold to bet against a government not constantly decreasing the purchasing power of its currency to prop up asset prices, [...]
That would only prop up assets prices in nominal terms, but doesn't have much to do with your retirement planning. (Unless your only alternative to index funds is sticking local money under your mattress; and you can't even think of sticking gold coins or foreign currencies under your mattress, or buy real estate etc.)
Correct, but that accomplishes the goal of having a hidden tax (although more people are aware of it now) on earning income (since labor price increases lag asset prices increases).
Just look at who the biggest winners pre and post Covid are. If you owned assets pre Covid, you are golden. The more you owned, the more guilded you became. Pretty much all government policy I see starts with the basis of how do we ensure existing asset owners stay ahead of the rest.
Itβs a mechanism to ensure the social order/hierarchy persists (which is a combination of wealthier/older/soon to be older/beneficiaries of older at the top and labor sellers/young/poor at the bottom). Because that is what is politically possible (until a catalyst prompts revolution).
Reducing purchasing power of currency is one way, but another is also replacing goods and services in defined benefits with inferior goods and services. For example, Medicare/Medicaid used to provide for seeing a doctor, whereas now and in the future, you are likely to have to see a Nurse Practitioner or Physician Assistant, unless you cough up more money for concierge care or direct primary care.!
ideally, direct care is saving more than it costs - $50 for unlimited visits, free telemedicine, no copays, all office procedures free, wholesale meds and labs for up to 95% less. Then you can lower your ins premiums by 30-60%.
That would only prop up assets prices in nominal terms, but doesn't have much to do with your retirement planning. (Unless your only alternative to index funds is sticking local money under your mattress; and you can't even think of sticking gold coins or foreign currencies under your mattress, or buy real estate etc.)