Leaving aside for a minute the Austrian theory of the business cycle, and asset bubbles and whatnot, this graph shows pretty explicitly just how damaging inflation is.
CPI is the red line, indexed to the secondary axis. The S&P 500 nominal is the blue line (Adj. Close) which includes dividend adjustments. The green line is the real (adjusted for inflation) S&P500, indexed to be equal to nominal S&P500 in Jan. 1960. Both S&P 500 indices are mapped onto the primary axis. Yeah. Prof J out.