In his classic The Constitution of Liberty F.A. Hayek points to inflation as one of the most pernicious ways government usurps the power of individuals to support themselves in retirement and increases dependency upon government-provided welfare systems. Writing in 1960, he showed how government-caused inflation had eroded—sometimes by two-thirds or more–the purchasing power of savings of a typical retiree in Germany, France, or the U.S.
In these circumstances, even people with a moral or ethical will to save and to remain independent of the state had been essentially robbed of this option by government actions, and—to make matters worse, if not hopeless—had been corrupted into becoming an interest group pushing for larger government welfare programs.
Read the rest of the story: Cutting Old Age Entitlements: Why Japan Can Lead the Way.