Beating Inflation: Lessons From History

People walk by the New York Stock Exchange (NYSE) in New York City on May 12, 2022.Spencer Platt/Getty Images

The United States has gone through several inflationary periods. Two memorable ones occurred around WWI and WWII. But today, most people remember the 1970s and early 1980s when inflation was out of control. Unfortunately, in 2022, inflation is again climbing with no end in sight.

Currently, inflation sits at 9.1 percent. And people are scrambling to deal with it. So, what lessons have we learned from past inflationary times? And how can we apply them to 2022?

Inflation Devalues the Dollar

Inflation erodes the dollar’s value. When the overall prices of goods and services increase, inflation takes hold. That makes each dollar you earn or save worth less and less.