3 ms·
> The beauty of inflation is that it hurts you in direct proportion to how well off you are This seems opposite of reality. During inflation, prices of assets
by steffan 6y ago
> The beauty of inflation is that it hurts you in direct proportion to how well off you are
This seems opposite of reality. During inflation, prices of assets rise, as the currency with which to procure them becomes devalued; those who possess assets are in a much safer position than those who exchange their labor for currency, since inflation will happen far more rapidly to the necessities of life (food, shelter, etc.) than to wages.
Cf. the price of houses, cars, etc., in the U.S. and worldwide vs. the corresponding increases in wages.
- CuriouslyC 6y agoRent and wages are both negotiated prices, there's no reason one should rise faster than the other besides workers not asking for what they're worth, assuming there isn't a shortage of housing and a glut of workers. Stocks will rise in response to inflation, but that will result in additional taxation since the initial investment is uninflated.