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Inflation is another tax on the poor. The poor are more dependent on money because most our capital is in money and the wages are lagging behind inflation even

Inflation is another tax on the poor. The poor are more dependent on money because most our capital is in money and the wages are lagging behind inflation even in the best of cases.

dredmorbius 6y ago
Inflation is a tax on interest-bearing, interest-indexed, or financial instruments; loans, bonds, debt, and insurance claims (policies are priced in uninflated currency, claims are paid in inflated currency, see the 1980s liability insurance crisis triggered by high inflation, though blamed on much else). Wage-earners, and fixed-income households if inflation indexed are largely untouched by inflation.
- nathias 6y ago
  Sure, but I don't see how wage-earners are untouched by inflation?
  - dredmorbius 6y ago
    Fixed payents (bonds, etc) are fixed. Wage-earners see wages increase with inflation. Possible slight lag, but effectively little. Cash savings of course devalue. Asset holdings (real estate, equities) appreciate with inflation. Debts are reduced -- values fall as money is diluted (the gain side of banks' loss).
    - nathias 6y ago
      That's what I mean when I say poor - no debts, no assets just little savings in money and wages. Possible slight lag is not only possible and not slight, every increase in wages must be battled for while inflation comes automatically, money also represents 100% of the capital and therefore affects the poor completely.
      - jcfrei 6y ago
        > money also represents 100% of the capital and therefore affects the poor completely. Per definition the poor don't have much savings. Their wealth is mostly in durable consumer goods: Car, television, furniture, etc. The market prices of these goods rise with inflation.
        nathias 6y ago
        Consumer goods are not wealth, if they have any it's savings in cash. The cost of eating rises with inflation.
      - dredmorbius 6y ago
        The minimum wage argument is a fair one. All the more reason to index that.
        nathias 6y ago
        Fair wouldn't be my choice for a word to describe an increase minimum wage every 10 years or so if the political constellation is right, while the rich get handouts every day.
        dredmorbius 6y ago
        "Fair' == "a cogent and valid point in this argument". "Fair" != "a socially just policy'.
    - selfhoster11 6y ago
      > Wage-earners see wages increase with inflation. Possible slight lag, but effectively little. Some wage earners. The poorest of the society work for a minimum wage, and that wage won't be increasing anytime soon.

Inflation is another tax on the poor. The poor are more dependent on money because most our capital is in money and the wages are lagging behind inflation even in the best of cases.

dredmorbius 6y ago

Inflation is a tax on interest-bearing, interest-indexed, or financial instruments; loans, bonds, debt, and insurance claims (policies are priced in uninflated currency, claims are paid in inflated currency, see the 1980s liability insurance crisis triggered by high inflation, though blamed on much else). Wage-earners, and fixed-income households if inflation indexed are largely untouched by inflation.

nathias 6y ago
Sure, but I don't see how wage-earners are untouched by inflation?
- dredmorbius 6y ago
  Fixed payents (bonds, etc) are fixed. Wage-earners see wages increase with inflation. Possible slight lag, but effectively little. Cash savings of course devalue. Asset holdings (real estate, equities) appreciate with inflation. Debts are reduced -- values fall as money is diluted (the gain side of banks' loss).
  - nathias 6y ago
    That's what I mean when I say poor - no debts, no assets just little savings in money and wages. Possible slight lag is not only possible and not slight, every increase in wages must be battled for while inflation comes automatically, money also represents 100% of the capital and therefore affects the poor completely.
    - jcfrei 6y ago
      > money also represents 100% of the capital and therefore affects the poor completely. Per definition the poor don't have much savings. Their wealth is mostly in durable consumer goods: Car, television, furniture, etc. The market prices of these goods rise with inflation.
      - nathias 6y ago
        Consumer goods are not wealth, if they have any it's savings in cash. The cost of eating rises with inflation.
    - dredmorbius 6y ago
      The minimum wage argument is a fair one. All the more reason to index that.
      - nathias 6y ago
        Fair wouldn't be my choice for a word to describe an increase minimum wage every 10 years or so if the political constellation is right, while the rich get handouts every day.
        dredmorbius 6y ago
        "Fair' == "a cogent and valid point in this argument". "Fair" != "a socially just policy'.
  - selfhoster11 6y ago
    > Wage-earners see wages increase with inflation. Possible slight lag, but effectively little. Some wage earners. The poorest of the society work for a minimum wage, and that wage won't be increasing anytime soon.