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Investors and the Government are the first in line to profit from inflation, since it devalues the one thing only they can afford: debt. And investments in the
by matt4077 9y ago
Investors and the Government are the first in line to profit from inflation, since it devalues the one thing only they can afford: debt.
And investments in the stock market, real estate or anything else than actual money are at least protected by usually rising with inflation.
The one group that suffers disproportionally from inflation are the elderly, who receive a fixed pension (/social security) based on their lifetime dues.
Right after that are employees, because wages typically lag behind when inflation picks up.
- imtringued 9y ago>And investments in the stock market, real estate or anything else than actual money are at least protected by usually rising with inflation. Quantiative Easing is used as a tool to increase inflation by the central bank through buying stock. Of course this means stock keeps it's value with increasing inflation while everything else doesn't keep up with inflation. Obviously this is bad for those who don't own stock.