Coronavirus Crisis Exposes a Devastating Consequence of Fed Policy: Americans Have No Savings

Inflationary economic policy, absent the guardrails of sound money, has created a situation with an obvious and deadly conclusion: many Americans lack savings to protect themselves against downturns.

Source: Coronavirus Crisis Exposes a Devastating Consequence of Fed Policy: Americans Have No Savings - Foundation for Economic Education

It can certainly be difficult to save when your effective interest rate is negative. While this is hardly a new problem, the shutdown of the economy due to COVID-19 has served to illustrate it well.

It's common to hear that we need to minimum wage but it is the quality of the money that is the real problem. Gold and silver are often used by investors as a hedge against inflation. In 1964, minimum wage was $1.25 or 5 silver quarters. Today, the melt value of 5 silver quarters is about $15 (or maybe higher these days).

It's no wonder so few people and small businesses have the savings to withstand the shutdown of their business or job for a month or two.