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> Inflation hoses the middle class who wants to save in cash Can you point me to some middle class people who are just sitting on a huge pile of cash? I'm a pr
by mullingitover 5y ago
> Inflation hoses the middle class who wants to save in cash
Can you point me to some middle class people who are just sitting on a huge pile of cash? I'm a pretty standard middle class person and the vast majority of my net worth is tied up in a 401k, and if it wasn't there it'd be in a house that would be seriously outpacing inflation.
- mindslight 5y agoA house and 401k are both illiquid and thus irrelevant to your economic bargaining power. If you're upper-middle class then sure your liquid funds might be in a brokerage account, but if you're lower-middle it's likely just a savings account where you're working on building an emergency fund.
- mullingitover 5y agoI can get liquidity out of my 401k trivially by borrowing against it. A home equity loan takes a bit more time but it's also simple to do. If you're lower middle class you most likely don't have any money in your savings account at all[1], but you do have debt which gets diluted by inflation. Also, to your earlier point: > Poor people don't have standing debts but rather revolving ones, and so their debt scales with inflation. So at worst that's a wash. [1] https://abcnews.go.com/US/10-americans-struggle-cover-400-emergency-expense-federal/story?id=63253846 https://abcnews.go.com/US/10-americans-struggle-cover-400-em...