Why US. Inflation Matters—and How to Protect Your Cash

Sudip Sengupta

July 6, 2025

Why U.S. Inflation Matters—and How to Protect Your Cash

Why US. Inflation Matters—and How to Protect Your Cash

5. A Look Back: 1970s—The Inflation That Burned Everyone

A Look Back 1970s—The Inflation That Burned Everyone
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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Hi there! I am Sudip Sengupta, the face behind "Tfin Career". Tfin Career is a sole proprietorship finance and consulting firm that makes complex tax and financial concepts easy to understand for everyone. With more than 21 years of experience in the field, I have noticed that people cannot make the right decisions in this field. So, I decided to create "Tfin Career" to help individuals and businesses alike. Here I urge those who are confused to make better choices. Also, it is good news for my dear clients and every visitor that I/we are going to start a training module for those who want to choose a career path in Finance and Taxation. Just follow my website.

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