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Of course it makes it non-liquid... but we need to be clear on what that means. If your money is in an IRA then that means it takes a week to get to your money instead of 10 seconds. Thats fine, as I said responsible money management means you have some small amount of cash on hand (whatever you may need to cover you over a weeks time) and the rest is non-liquid but easily liquidated.
> IRA has a maximum contribution limit, that doesn't make it a great mechanism for savings.
Its part of a savings plan, not the only. You should be making the max contribution to your IRA if you make enough to do so, beyond that you use a regular brokerage account and ensure you still use low risk mutual funds.
> The way savings usually work in our banking economy is people used to put it into a bank, for it to be loaned out, and interest to be paid back on it to keep it above inflation, and even make a profit.
This wasn't a great system, but it was better.
You certainly can do that, use a bank and put it in a CD (long term) or high-yield account (short term) to just barely break even on inflation. But thats very irresponsible and ultimately means you will just break even on inflation and not benefit, which doesnt make inflation bad for you just makes it neutral. While most more responsible people will have their money in investments.
> A better system would be savings in a secure currency, or a strengthening currency, rather than a weakening currency where people have to run just to keep up with the devaluing of their money.
You can do that, but no it is neither good for the economy or responsible for the masses to do that. Some will who are just paranoid but the last thing we want is stagnant wealth people hoard, that isnt good for your pockets or society. Currencies that dont undergo low rates of inflation kill economies, and we have seen that in the past when we had exactly that with the gold standard.
