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> normal savings accounts pay interest rate that protects from inflation

Pray tell which banks are you banking with?

> What high inflation does in some jobs, it allows employers not to lay off people by not increasing their wages

shorter: "Let's screw the labor class over so that their managers don't have to fire themselves."

> Money should not be good store of value in long term.

"it is important to encourage consumption at all cost in the long term"

It's definitely not a bank in Canada.

A TD High Interest bank account has a 0.050% interest rate after $5,000. Before that the interest rate is 0.000%.

Don't worry, as long as you have $25,000 dollars in there, they'll waive the transaction fees every month ($5 per transaction).

I might as well stick it under the mattress and pretend I don't have it at those rates.

You are discussing a theoretical world. In the real world, interest rates are 0.

I can't find a SINGLE savings account over 1%, while inflation is over 5%:

https://www.bankrate.com/banking/savings/rates/

Treasury bonds are barely better -- 10yr < 2% (!)

> And this is how it should be. Money should not be good store of value in long term.

Other than the last hundred or so years (and a few historical fiat currencies) money has always been a good store of value. Or I should really say ‘specie’ instead of ‘money’.

We have lived in a time of very low interest rates for a long time, if they ramp it up; the leveraged real estate market will collapse. Repeat the money printing to bail them out. A hole cannot be escaped by digging deeper.

This comment is spot on.

Interest rates are not in line with inflation, therefore, savers are being eaten alive. Those on fixed income (retirees, disabled) are getting absolutely screwed.

I dont think economics works that way. You absolutely can escape a hole by digging deeper. "Escaping" including mechanisms such as trigger a revolution, pogroms, world wars etc.

> And this is how it should be. Money should not be good store of value in long term.

LOL. If money isn't a good store of value, the market will find something else that is.

Inflation and wages are in fact connected.

real wages and inflation are not (this is what I said)

Wages follow inflation, of course.

Not entirely true..

https://www.investopedia.com/terms/w/wage-push-inflation.asp

THIS IS WHAT THEY BELIEVE

https://youtu.be/QsAnssN1cxM

Is it wrong?

In short, yes. The part where the professor says "jobs will catch up" is naive at best, dangerous in reality.