People don't realize that at that target rate of 2% yearly, your savings lose half their purchasing power over a 10 year timespan. The number looks small, so people see that and say "oh, no big deal" but they don't realize how big of an impact it has on their net worth if their assets are mostly fiat currency. Additionally, most people don't notice how this affects their behavior and encourages people to save less and spend more, but from a macroeconomic perspective the effect is plain as day, most people have less than 1k in savings.