Inflation is a hidden tax on the poor from "summary" of Free to Choose by Milton Friedman
Inflation affects everyone in society, but its impact is particularly harsh on those with lower incomes. When prices rise across the board, it erodes the purchasing power of the money in people's pockets. The wealthy may be able to protect themselves by investing in assets that appreciate in value, but the poor have no such cushion. They are left to bear the full brunt of rising prices without any means to offset the loss. For the poor, every increase in the cost of living is keenly felt. It means having to stretch already meager resources even further to cover the same basic necessities. Inflation forces them to make difficult choices between essentials like food, shelter, and healthcare. As prices continue to climb, the poor find themselves slipping further behind, unable to keep pace with the ever-rising cost of living. Inflation is often described as a hidden tax because it has a similar effect on people's finances. Just as taxes take money out of people's pockets to fund government spending, inflation silently siphons off their purchasing power through rising prices. The difference is that while taxes are transparent and subject to public debate, inflation operates quietly in the background, steadily eroding the valu...
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