On Sunday, former White House communications director and investor Anthony Scaramucci said that inflation has steadily weakened the U.S. dollar, creating what he described as a widespread illusion of wealth among Americans.
Scaramucci: Inflation Warps How Americans Measure Wealth
In a post on X and a video message, Scaramucci said the dollar “didn’t just weaken — it quietly robbed you,” arguing that the currency has lost roughly 28% of its value over the past five years due to inflation.
“Everyone thinks they got rich. They didn’t,” Scaramucci wrote. “The measuring stick got warped.”
He said inflation allows politicians to escape accountability because rising prices make nominal wealth look larger, even though money buys less over time.
“People confuse bigger numbers with more wealth,” he added.
Gold Comparison Highlights Long-Term Dollar Erosion
To illustrate his point, Scaramucci compared U.S. home prices using gold rather than dollars as a benchmark.
He said his parents purchased a house in 1962 for about $16,000, when gold was priced near $35 an ounce, translating to roughly 457 ounces of gold.
Today, he said the same house is valued around $750,000, while gold trades near $3,300 an ounce — equivalent to about 227 ounces.
‘You’re Not Richer. The Currency Is Weaker’
Scaramucci argued that inflation distorts perceptions of prosperity, pointing to the idea that $1 million today carries far less purchasing power than it did decades ago.
“You’re not richer,” he said. “The currency is weaker.”
Dollar Index Shows Recent Weakness
Scaramucci’s comments come as the U.S. dollar index, which measures the dollar against a basket of six major currencies, has slipped from its 2022 highs.
At the time of writing, the U.S. dollar index was last at 99.15, down 0.24% on the day, Trading Economics data showed.
While the index posted a modest monthly gain, it remains down about 9% from a year earlier. In the past five years, the index reached its peak in 2022, at nearly 113.
Photo courtesy: Al Teich / Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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