> Why would you hold an investment for 55 years that isn't beating inflation?
The point is that the inflation is getting taxed also. Say inflation is at 2 percent per year over the period, and it's appreciating at 2 percent more than that annually. Then when you pay taxes, the "capital gain" amount includes both the real appreciation and the inflation. So in this example, half of the putative "gain" is actually inflation.
The point is that the inflation is getting taxed also. Say inflation is at 2 percent per year over the period, and it's appreciating at 2 percent more than that annually. Then when you pay taxes, the "capital gain" amount includes both the real appreciation and the inflation. So in this example, half of the putative "gain" is actually inflation.