The idea is to disincentivize hoarding cash and promote active usage of money in the economy, because governments believe that having useful markets is better than not having them. Regardless of the current living standards and your wages. Rising prices and wages are not the goal per se.

So all your dollars are put on fire and lose 2% of their value annually. You can watch your cash burn to spite the Fed, or you can give it to someone else and make it their problem what to do with dollars while you enjoy whatever you bought.