“Arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislature. The inflation tax has a fantastic ability to simply consume capital” — Warren Buffett
Share the Warren Buffett Money quote image above on your site:
Short Link to this Quote:
Warren Buffett calls inflation “the far more devastating tax” because it reduces the purchasing power of money over time, similar to a tax. When inflation is high, the same amount of money can buy fewer goods and services in the future than it can today. This erosion of purchasing power through inflation acts like an invisible tax, slowly consuming the value of people’s savings and assets.
By highlighting this effect, Buffett aims to emphasize how insidious inflation can be since it drains wealth silently without people fully realizing it, unlike a traditional tax increase that receives more direct attention.