You'd rather have the money now
If I have no dollars and I need to eat right now, yes. But as part of a larger portfolio? It depends. If you assume no credit risk, by taking on the inflation risk in the example, you are providing value back to the person offered the future dollars. It may make sense to have someone else bearing that risk for a portion of your portfolio, so it may actually provide value as opposed to being something where you attempt to extract value. That transfer of risk is exactly what TIPS do vs. general treasury bills/notes/bonds.
Not perfect since it includes a little bit for inflation.
...or a lot for inflation, depending on your point of view. The nominal rate is about 2.2%, the real rate is actually about 0.6%:
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldSo most of that 2.2% rate is expected inflation. You'll note in the shorter time frames, people are actually
paying the government to take on the risk of inflation... because the unexpected portion of the inflation is a higher risk than the expected portion that averages out over time.
At some point the amount of total value I'd get in return for working will fall below the amount I'd want to get in order to trade away my time and effort.
Of course. At some point it's about your preferences of time / value of money. e.g. The "what is an hour of your time worth" thread that is currently running on the forums... And that's not to say you shouldn't ask for return above and beyond CPI-U inflation, as your personal rate of inflation may be higher... you may be more sensitive to health cost increases as you age and thus not following the CPI-U... you may want compensation for risk of Social Security law changing... lots of reasons, but the number picked for discounting is a "soft" number that will vary person to person, so it's hard for others to comment on your choice.