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Deflation ( or low inflation ) works for the rich moreso because who do you think holds all that debt? Mild inflation "ages out" the stock of debt. We think 4%
by ArkyBeagle 11y ago
Deflation ( or low inflation ) works for the rich moreso because who do you think holds all that debt? Mild inflation "ages out" the stock of debt.
We think 4% is a good rate of inflation for a recovery ( if a bit low ) but we're unable to maintain even 2%. This is incredibly strongly correlated with wealth inequality.
- runT1ME 11y ago>Deflation ( or low inflation ) works for the rich moreso because who do you think holds all that debt? The...US Government. I do not agree at all 'deflation' works better for the rich. I think you missed the part about being leveraged into assets. That's huge. >but we're unable to maintain even 2% Going by CPI? Take a look at the Dow and RE and tell me inflation is less than 2%.
- ArkyBeagle 11y agoNo, you're right - the principal benefactor is the government, but that's pretty weird and unsustainable. Not to mention a massive conflict of interest. Yes, by CPI. I think the rise in real estate is caused by the deflationary nature of the rest of the economy. The Dow? That's just our standard bellwether now.