This is correct. The associate would need their compensation to be rising at the rate of inflation (which it certainly wont) in order to take advantage of incre

This is correct. The associate would need their compensation to be rising at the rate of inflation (which it certainly wont) in order to take advantage of increased purchasing power vs their debt. If rich person xyz has a net worth mostly denominated in assets that at least keep pace with inflation they can take out fixed rate debt and inflation will devalue it in -comparison- to their other assets.