It punishes people who save money in unproductive ways, such as stuffing it in a mattress. We want to encourage people to invest their savings productively, benefiting them and the economy. The middle class are generally very good at this, putting capital into pensions (which are invested), tax efficient savings schemes, shares and property.
This is correct. The middle class owns little in cash, but owe a lot in debt. Inflation eats a little of the former, and significantly lowers the burden of servicing the latter.
Inflation isn't the thing they need to worry about. What they need to worry about is making sure their particular job's wage inflation is keeping up with the average.
Putting your money under a mattress is not responsible, putting it on an investment which will accrue interest is, and imagine what. That interest will compound not only from inflation but ensuring good gains
