---
title: "Meaning & Key Takeaway of: The true nature of the inflation effect…"
description: "\"“The true nature of the inflation effect has never been more accurately perceived or more vividly described than it was by Thomas Jefferson: It will be..."
image: "https://sms4smile.com/quotes/i/c73/g-edward-griffin-2-99169_inflation_the-true-nature-of-the-inflation-effect_898417.jpg"
---

#  The true nature of the inflation effect has never been…

![“The true nature of the inflation effect has never been more accurately perceived or more vividly described than it was by Thomas Jefferson: It will be asked how will the two masses of Continental and of State money have cost the people of the United States seventy-two millions of dollars, when…” quote by G Edward Griffin](https://sms4smile.com/quotes/i/c73/g-edward-griffin-2-99169_inflation_the-true-nature-of-the-inflation-effect_898417.jpg)   [Download](https://sms4smile.com/quotes/i/c73/g-edward-griffin-2-99169_inflation_the-true-nature-of-the-inflation-effect_898417.jpg) [Open image](https://sms4smile.com/quotes/i/c73/g-edward-griffin-2-99169_inflation_the-true-nature-of-the-inflation-effect_898417.jpg)

> ““The true nature of the inflation effect has never been more accurately perceived or more vividly described than it was by Thomas Jefferson: It will be asked how will the two masses of Continental and of State money have cost the people of the United States seventy-two millions of dollars, when they are to be redeemed now with about six million? I answer that the difference, being sixty-six millions, has been lost on the paper bills separately by the successive holders of them. Every one, through whose hands a bill passed, lost on that bill what it lost in value during the time it was in his hands. This was a real tax on him; and in this way the people of the United States actually contributed those sixty-six millions of dollars during the war, and by a mode of taxation the most oppressive of all because the most unequal of all.””

G Edward Griffin

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Inflation erodes money value, acting as a hidden tax on holders over time.

**In simple terms:** Inflation is a hidden tax.

Key Takeaway

Protect assets from inflation.

Themes

economics inflation taxation

Mood

analytical concerned

Type

Inflation:1 Money:0 Nature:0 True nature:0 Inflation Effect:0 Taxation Oppressive:0 Dollars War:0 Jefferson Asked:0

When to use this quote

- investing
- budgeting
- policy analysis

Key Concepts

monetary policy wealth preservation

Questions to Reflect On

- How can individuals safeguard against inflation?
- What policies mitigate inflation’s impact?

A Different Perspective

Some view inflation as a necessary economic tool.

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[Inflation](https://sms4smile.com/quotes/about/inflation/) [Money](https://sms4smile.com/quotes/about/money/) [Nature](https://sms4smile.com/quotes/about/nature/) [True nature](https://sms4smile.com/quotes/about/true-nature/)

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## More by G Edward Griffin

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G Edward Griffin

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