Moderate inflation is in the interest of working people. While their incomes increase capital is eroded. That the minimum wage was not raised in line with infla

Moderate inflation is in the interest of working people. While their incomes increase capital is eroded. That the minimum wage was not raised in line with inflation was a political choice. The past 20 years have seen historically low inflation and interest rates. It's this fall in inflation and interest rates that has transferred so much wealth to property owners. In cities where the supply of land is limited, the price of a home works out at about the level where your mortgage payments roughly equal what you'd pay in rent. Thus when interest rates are low for long enough house prices go up to compensate. With higher house prices the downpayment required also increases, making it harder to get on the first rung of the ladder. When inflation was high, people quickly built equity in their homes (since the mortgage principal is fixed but the value of your home rises with inflation.)