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Deflation, not inflation, steals from the poor and gives to the rich. Deflation depresses wages and increases the value of assets (including outstanding debts!
by thisislame 11y ago
Deflation, not inflation, steals from the poor and gives to the rich. Deflation depresses wages and increases the value of assets (including outstanding debts! rich people use debt, poor people have debt.)
- dnautics 11y agopoor people either aren't in debt (because no one will lend to them), or have debt on such short timescales or high interest rates that inflation has a negligible effect on the real value of their indebtedness.
- underdown 11y agoI'd argue both hurt poor people. Wage growth typically lags behind inflation.