The inflation rate has just about always been positive (besides a few rare years in the 1920s and 1930s). Holding dollars has always lost you buying power. Its just that in recent years, the rate of inflation has been enough for more people to notice.
The smart ones will have their sons and daughters intermarry into the families of the guards. Whether or not their pride will allow them to actually do that is another thing. That and there is a chance the guards will probably just takeover anyways. That or a well armed raiding group will take em out.