4 ms·
> In a true inflation income rises along with prices so wage earners So "true inflation" is no different than a "true scotsman." Wealthy people invest, buy pr
by trainsplanes 5y ago
> In a true inflation income rises along with prices so wage earners
So "true inflation" is no different than a "true scotsman."
Wealthy people invest, buy properties, and have assets that grow in value with inflation.
The poor have cash in a bank or in their closet that becomes increasingly worthless with inflation. Their rent, gas, and bread prices go up by large amounts, but if they're lucky, they might get an extra 2 cents an hour for their work.
- imtringued 5y agoIf you buy assets, the seller of the asset has cash. It's a hot potato that you have to pass around for this to become true and you are never allowed to pass the hot potato to workers. If the seller of the asset is a worker, then you have already lost. If the seller of the asset is a rich person, then you just are back to square one as the second rich person has the inflation problem. If the seller of the asset is a company, then it has to do something with the money as inflation erodes it, but it cannot do anything with the money because hiring people would give it to workers again, which means you lost the hot potato game again.
- lotsofpulp 5y ago> If the seller of the asset is a company, then it has to do something with the money as inflation erodes it The company does share buybacks and puts it back into the hands of a rich person.