While I generally agree with your premise, I would point out that in order for inflation to stay as high as it is now, we’d have to keep printing tons of money, and as long as that is happening, the S&P 500 will return much higher than 7% (as we’ve seen the past 2 years). So I would argue that sticking money in a low-cost index fund is still fine and you will still grow your money over time.

That said, I do strongly believe that the general populace needs to think about what it means to be an owner of things. It’s become clear to me that anyone who wants a modicum of financial security and comfort in their lives needs to both strive for a higher income and buy and hold productive assets. That can be anything that reduces your costs (buying a home and keeping it, gardening to save on food, staying healthy with a trainer or gym membership to reduce Healthcare costs long-term, etc) or increase your income (rental property, dividend stocks, running a business, etc). We are in a world of extreme concentration of supply-side wealth, and we working stiffs need to be a part of the supply-side of the economy.