As savers, we lose. Since the changes in individual prices during periods of inflation are not all equal, some people gain and others lose. Thus, people are understandably unhappy when they lose in the redistribution game. Another related issue is the effect inflation may have on worker behavior. During noninflationary times, workers work hard to earn merit raises , which add a percentage point or two to the increase in wages received by average workers.
Workers are more concerned with keeping up with the cost of living than with merit raises.
Calls for government involvement increase. Rather than supporting equality of opportunity, people begin to demand equality of outcomes. If the process is perceived as unfair, many voters will cast their ballots for candidates who promise to focus on results, rather than processes. In this way, inflation can erode the rule of law that is so important to a productive, growing economy. Never mind that the government is the source of the inflation problem, or that inflation-induced distortions of the tax system contribute to the pain.