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Chip Somodevilla \/ Getty <\/p>\n Chip Somodevilla \/ Getty <\/p>\n
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.<\/p>\n
As Americans watched their buying power erode through 2021 and 2022, with inflation peaking at a 40-year high of 9.1% in June 2022 (1), pundits offered a long list of factors they blamed for causing the rise in the cost of goods: increased consumer spending, rising labor costs, supply chain disruptions and monetary and fiscal policies.<\/p>\n
However, if the late Nobel Prize-winning economist Milton Friedman \u2014 renowned for his work on monetary policy and free-market principles \u2014 were still alive, he\u2019d certainly have a more straightforward explanation for the phenomenon.<\/p>\n
\u201cInflation is made in Washington because only Washington can create money, and any other attribution to other groups of inflation is wrong,\u201d Friedman once famously stated (2).<\/p>\n
\u201cConsumers don\u2019t produce it. Producers don\u2019t produce it. The trade unions don\u2019t produce it. Foreign sheiks don\u2019t produce it. Oil imports don\u2019t produce it. What produces it is too much government spending and too much government creation of money and nothing else.\u201d<\/p>\n
Although Friedman (who died in 2006) made these remarks decades ago, they continue to strike a chord. Back in October 2024, Sen. Rand Paul posted a clip of this speech, which garnered more than 50 million views on X.<\/p>\n
The post also caught the eye of Tesla CEO Elon Musk, who reposted it, along with a \u201c100%\u201d emoji to signal his full agreement with Friedman\u2019s message.<\/p>\n
High prices have been throttling Americans\u2019 budgets for years. Though inflation was down to 2.4% in January 2026, the country is still facing an affordability crisis.<\/p>\n
Since 2020, costs have soared \u2014 the price of groceries is up 30%, electricity has risen 41% and car repairs have skyrocketed 63%. And while average weekly wages have risen 31% over the last six years, inflation has erased most of those gains (3).<\/p>\n
Americans are also concerned about the effects of tariffs on their wallets. Though the One Big Beautiful Bill Act is poised to boost tax refunds this year, the Tax Foundation estimates that for middle-income households, tariffs will erase 70% to 95% of those gains. For lower-income tax filers, the situation is even worse (4).<\/p>\n
The good news? Musk has already shared some strategies for navigating these kinds of economic pressures.<\/p>\n
In March 2022, just before U.S. inflation reached a decades-high peak, Musk advised: \u201cIt is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high (5).\u201d<\/p>\n
Let\u2019s take a closer look at these assets.<\/p>\n
Read More: I\u2019m almost 50 years old and don\u2019t have retirement savings. Is it too late to catch up?<\/a><\/p>\n Read More: Non-millionaires can now invest in this $1B private real estate fund starting at just $10<\/a><\/p>\n Real estate is a well-known hedge against inflation. As the cost of raw materials and labor rises, new properties become more expensive to build, which then drives up the price of existing real estate.<\/p>\n However, well-chosen properties provide more than just price appreciation. They also come with a steady stream of rental income, which also typically goes up when prices do.<\/p>\n Of course, properties don\u2019t come cheap these days, especially when you factor in today\u2019s still-high mortgage rates \u2014 over 6% for 30-year loans in February 2026 (6).<\/p>\n But you don\u2019t need to buy a house to start investing in real estate. Crowdfunding platforms like Arrived<\/a> have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.<\/p>\n Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.<\/p>\n To get started, simply browse through their selection of vetted properties<\/a>, each picked for their potential appreciation and income generation.<\/p>\n Once you choose a property, you can start investing with as little as $100<\/a>.<\/p>\n Another option is mogul, a real estate investment platform offering fractional ownership in blue-chip rental properties<\/a>, which gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 a.m. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes nationwide<\/a> for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.<\/p>\n Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours<\/a>, with investments typically ranging between $15,000 and $40,000 per property.<\/p>\n Every investment is secured by real assets<\/a>, not dependent on the platform\u2019s viability. Each property is held in a standalone Propco LLC, so investors own the property \u2014 not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.<\/p>\n Getting started is quick and easy. You can sign up for an account and then browse available properties<\/a>. Once you verify your information with their team, you can invest like a mogul in just a few clicks.<\/p>\n Equities offer another powerful tool for combating inflation and its residual effects \u2014 something billionaires like Musk understand well.<\/p>\n The nonprofit Oxfam reported that billionaire wealth jumped by over 16% in 2025 \u2014 three times faster than the past five-year average \u2014 to $18.3 trillion. That\u2019s its highest level in history (7).<\/p>\n For many of those billionaires, much of their wealth is linked to the companies they founded or currently manage. When inflation drives up prices, businesses that can successfully pass these costs on to consumers through higher prices can maintain or even grow their profit margins. This, in turn, can lead to increased earnings and potentially higher stock prices.<\/p>\n But you don\u2019t have to be in the billionaires club to reap some of those benefits yourself. Trading platforms like Public<\/a> allow everyday investors to capitalize on the stock market by investing in fractional shares. The platform also has interactive social features \u2014 meaning you can follow, share ideas and learn from other investors.<\/p>\n And for a limited time, you can even earn a 1% uncapped match<\/a> when you transfer your portfolio to Public from another brokerage.<\/p>\n Of course, not all stocks are created equal. To make informed decisions, investors can use research tools like Moby<\/a> to access expert analysis and market insights.<\/p>\n Moby\u2019s team spends hundreds of hours sifting through financial news and data to provide you with stock and crypto reports delivered straight to your inbox<\/a>. Their research keeps you up-to-the-minute on market shifts and can help you reduce the guesswork behind choosing stocks and ETFs.<\/p>\n Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes<\/a>.<\/p>\n Ultimately, everyone\u2019s financial situation is unique, with different obligations, risk profiles and investment goals. If you\u2019re unsure about navigating the market on your own, it might be worth working with a financial professional. That\u2019s where Advisor.com<\/a> can help.<\/p>\n Advisor.com is an online platform that connects you with vetted financial advisors to make the process of finding the right advice easier.<\/p>\n Just answer a few quick questions about yourself and your finances, and the platform will match you with experienced financial professionals best suited to help you develop a plan to achieve your retirement goals.<\/p>\n You can schedule a free consultation<\/a> today to find the right advisor for you.<\/p>\n Musk\u2019s advice to invest in physical assets makes sense because commodities appreciate even when inflation soars.<\/p>\n And what tangible asset shines brighter than gold?<\/p>\n The precious metal offers a solid hedge against inflation and other economic uncertainties, proving its resilience over decades. In fact, gold reached historic highs of $5,602 per ounce in January (8).<\/p>\n That\u2019s probably why Bridgewater Associates founder and billionaire Ray Dalio urged investors to increase their gold holdings back in October, saying \u201cgold is a very excellent diversifier of the portfolio (9).\u201d<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold<\/a> \u2014 making it a suitable option for those looking to hedge their retirement funds against economic uncertainties.<\/p>\n Download their free information today to learn how to get up to $10,000 in free silver<\/a> on qualifying purchases.<\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.<\/p>\n US Inflation Calculator (1<\/a>); X (2<\/a>), (4<\/a>), (5<\/a>); Bloomberg (3<\/a>), (9<\/a>); Mortgage News Daily (6<\/a>); Oxfam (7<\/a>); APMEX (8<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Chip Somodevilla \/ Getty Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the…\n","protected":false},"author":2,"featured_media":303782,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,3205,219,108142,166410,111,139,69],"class_list":{"0":"post-303781","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-dave-ramsey","10":"tag-economy","11":"tag-labor-costs","12":"tag-milton-friedman","13":"tag-new-zealand","14":"tag-newzealand","15":"tag-nz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/303781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=303781"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/303781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/303782"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=303781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=303781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=303781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}