The risk free rate of return is usually only a point or two above inflation, and I’d argue that real wealth, rather than nominal wealth, is the true measure to look at to determine whether someone’s position has improved, stayed flat, or decreased.

> it simply means wealth grows slower, but still increases

But what does this mean? If you have a load of money in some companies, that's helping to fund their activities, and the companies' share price goes up a bit, you haven't gained any money. And you won't gain any until you sell some shares, which is already taxed.