5. A Look Back: 1970s—The Inflation That Burned Everyone
Let’s rewind to the U.S. “Great Inflation” of the 1970s:
- Annual inflation soared between 7% and 14%, peaking at 13.3% in 1979 (en.wikipedia.org).
- The Fed, then led by Paul Volcker, pushed rates over 20%, triggering a deep recession—but eventually tamed inflation (en.wikipedia.org).
Inflation at that scale did not just reduce savings—it wiped them out. And while today’s inflation is lower, the lesson is clear: unchecked inflation can devastate financial planning.
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