Has the dollar lost its purchasing power, which is always one dollar applicable to tax obligations, or have our wages/earnings fallen in relation to prices? There is a difference when discussing macroeconomics. Inflation is good for an economy if wages keep up with it. It allows the middle class to accumulate wealth against their private debt via their property. My current concern is for deflation of our economy which does the opposite and is self-feeding as people tend not to spend in a deflationary environment.