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>Future generations pay this back not through taxes but through inflation. I don't think that's a fair characterization. Inflation helps people with student lo
by mrfredward 6y ago
>Future generations pay this back not through taxes but through inflation.
I don't think that's a fair characterization. Inflation helps people with student loans (salary grows but debt stays the same) and hurts people with retirement accounts full of bonds. Broadly speaking, inflation helps the young (by closing the wealth gap between haves and have-nots).
- claudeganon 6y agoHow’d that theory work out with asset price inflation in the housing market, post-2008?
- alexmingoia 6y agoNot every young person is in debt. Inflation helps those in debt or holding debt denominated assets, young and old. Inflation hurts savers. If you’re young without debt, inflation devalues your savings.
- throw1234651234 6y agoThat's the argument for crypto and the gold standard.
- thomashobohm 6y agoThe actual reason why inflation hurts young people has to do with economic stability and its cascading effects on the economy. A period of significant inflation can wipe out generational mobility. Inflation has a minimal effect on "closing the wealth gap" in comparison and I think it's irresponsible to act like hyperinflation would be a reasonable way to solve economic inequality.
- mrfredward 6y agoYes, fully agree that economic instability from hyperinflation hurts far more than reducing the wealth gap could help. In recent times, the fed has been below its 2% inflation target.If it missed on the other side, and inflation went to 3-4%, I think that would be totally reasonable economic policy. Double digit inflation, however, would end up making everyone poorer.
- thomashobohm 6y agoTotally agree! I just don’t want people to get the wrong impression-easy to think that the takeaway is “inflation is always good for young people.”