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Lower-income people when they are borrowing, are borrowing at very high interest rates (credit cards or payday loans) and inflation doesn't help those situation
by dnautics 6y ago
Lower-income people when they are borrowing, are borrowing at very high interest rates (credit cards or payday loans) and inflation doesn't help those situations at all.
The wealthy are systematically benefitting from low-interest loans being reduced in value by inflation -- in the form of corporate bonds and leveraged trading (shorts, forex, margin accounts).
- xxpor 6y agoMost rich are asset holders. No poor people are (by definition). Therefore higher inflation (to a point) is better for poorer people.
- dnautics 6y agoTell that to the manual laborer working a long shift and swinging by a mcdonald's to get a double cheeseburger because there's no time to make food and who has the energy anyways. Oh also, that double cheeseburger is now $2.19 instead of $1.69 Inflation is good for you!
- throwaway316943 6y agoAssets keep up with inflation much better than working class wages.
- xxpor 6y agoThat might be true today, but wasn't during the last high inflation period of the mid-60s to early-80s.