Even if you are investing your cash ‘productively’ and keeping none under your mattress you are still paying the 2% nudge as your returns are partially eaten by inflation. It just reduces investment returns in real terms, investment does not make the cost of inflation disappear.
This affects poorest members of society disproportionately because they don’t have spare capital to allocate in order to offset their loss from inflation. They just pay higher prices.
This affects poorest members of society disproportionately because they don’t have spare capital to allocate in order to offset their loss from inflation. They just pay higher prices.