Will Inflation Make Us All Poorer?

In the world of rapid technology, advanced services, economic shift, busy lives and global uncertainties, it’s natural to wonder: Are we all getting poorer? While this question might seem very simple to you, answering it is quite difficult as we would have to consider many factors like economy, a combination of economics, inflation, societal trends, and resource distribution. Let’s explore Will Inflation Make Us All Poorer?

Understanding What Poverty Means Today

First of all we need to know that who is poor in today’s time? One who does not have money or one who is unemployed, unskilled, or one whose life is not growing. The point is that poverty is not one who has less money or no money but it is one which is creating a gap in your life in terms of how much you are working and how much money you need to live a decent life. Even if wages rise, if the cost of essential services – like housing, food, education, and healthcare – rises faster, people end up feeling poorer.

For many, it’s not just about owning less but about not being able to improve their quality of life over time.

Yes, the gap between the rich and the poor is widening, and the poor are getting poorer in some ways

• Global inequalityThe gap between the incomes of the richest and poorest nations has widened from 3:1 in 1820 to 70:1 in 2000. The world’s three richest people have more wealth than all less developed countries combined. 
• Income inequalityThe richest 1% of the world’s population receives as much income as the poorest 57%. 
• Asset appreciationThe wealthy benefit from asset appreciation, while middle and lower income groups face higher costs and financial strains. 
• The poorest of the poorThe poorest of the poor are worse off today than they were in 1969. Women, female infants, and the elderly are considered to be the poorest of the poor. 
• The world’s five richest menSince 2020, the world’s five richest men have more than doubled their fortunes, while the world’s poorest 60% have lost money.

The Rising Cost of Living

The first reason in this is inflation, where inflation is making a huge contribution to the fear of people that they will not get salaries at the same rate as inflation is increasing. Because of inflation many people are not able to fulfill even their basic needs. Essentials like groceries, rent, and fuel are becoming costlier, often outpacing wage increases. In such a situation, even those with stable jobs feel the pressure. And this can be a reason for many people to become poor in the future.

Widening Wealth Gap

The second reason is the gap between the rich and the poor. While the wealth of billionaires is growing at an unimaginable rate, some people do not even have money to eat and this defect is having a huge impact because in the world a few people are controlling all the wealth.
This growing inequality creates a perception that wealth is concentrated in the hands of a few, leaving the majority with less.

Even new business models, like gig work and part-time jobs, fail to provide financial security, adding to the sense that the dream of prosperity is slipping away.

Will Technology Save Us or Make Us Poorer?

Now let us know what role technology will play in this and will technology be able to save us.
While technology can create opportunities and drive economic growth, and is helping the world achieve rapid growth, it also comes with risks. Automation can lead to job losses, and the shift towards digital currencies or AI-powered services can exclude those who don’t have access to digital infrastructure. If not managed carefully, these advancements could deepen economic divides rather than close them. And many people in technology have left their jobs, due to which, while technology is helping people, it is also posing a lot of risks.