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Culture War Roundup for the week of December 5, 2022

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But instead of having that discussion, this post goes off in another direction. Firstly, the target of this article is simply wrong. Main street banks aren't stealing your money because they're not the ones causing inflation. The same loss of purchasing power would occur if you took your money and stuffed it under your mattress. It's the federal government's decision to target a positive nonzero inflation rate that's causing the issue, and that decision is no more of a "theft" of your money than simple taxation is. Some people might think the implicit tax of inflation is sneaky and therefore illegitimate, but there's nothing really secret about it.

I think a case can be made if banks are not paying full interest on deposits. For example, savings accounts yielding less than the federal funds rate.

The purpose of savings accounts is convenience in not having to store physical currency under your mattress. The selling point of savings accounts has never been returns or inflation protection or as a long-term retirement vehicle. If you want those things instead, then... go for a financial product that gives them.