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your comment makes absolutely no sense. rent prices going up has nothing to do (directly) with fiat. your lack of wage increases also is not a problem inherent

your comment makes absolutely no sense. rent prices going up has nothing to do (directly) with fiat. your lack of wage increases also is not a problem inherent to the use of fiat.

cryptica 5y ago
As reserve banks print more money, the money supply expands, this means more fiat chasing fewer goods. This is what makes house prices go up, which leads to increasing rent prices (real estate investors need the rental income to cover their mortgage repayments). Salaries, on the other hand, are negotiated up front and sometimes not re-negotiated for years... In the meantime, the currency is inflating (losing value, prices of everything going up). So by the end of the year, your salary buys you less than what you had negotiated at the start of the year. Some companies offer 2% salary increase per year; this is not enough to cover real inflation. By many accounts, the real inflation is much higher than that; the basket of goods to measure inflation has been manipulated over the years to make inflation seem smaller than it actually is. So even in those cases, employees are losing buying power over time. Besides, inflation is not a single number. Different items inflate at different rates. Money printing is creating wealth inequality which means that goods which appeal to wealthier individuals (such as real estate and other assets which provide financial independence) inflate faster than goods which appeal to the average person (which merely have survival utility).
rank0 5y ago
I believe his position is that irresponsible money printing is causing rampant inflation, which gets reflected into rent. Honestly, its not the worst logic in the world... The fear of inflation motivated me to purchase a property this year. My mortgage payment will stay the same for the life of the loan regardless of the value of USD. Hypothetically, wages should also raise with inflation but I suppose OP is saying that hasn't been his experience.
- cryptica 5y ago
  The only way to get a raise is to change companies. Pretty much everyone in the software industry will agree on this. Also, the way employees are hired and the way salaries are negotiated is totally unfair. There is often no logic behind it other than pedigree/family connections.
  - rank0 5y ago
    > The only way to get a raise is to change companies. Pretty much everyone in the software industry will agree on this. I can certainly agree with you here. The only times I've received significant raises are when I leave, or threaten to leave. I'm getting pretty sick of hopping around every year or two...but hopping is the only time where I have any leverage.
clipradiowallet 5y ago
His comment makes perfect sense to me, you could summarize his comment as a real-life example of inflation. His dollars ability to be exchanged for goods/services is diminishing.
cwkoss 5y ago
Low interest rates play a significant role in the recent rise of REITs and corporate landlords.

your comment makes absolutely no sense. rent prices going up has nothing to do (directly) with fiat. your lack of wage increases also is not a problem inherent to the use of fiat.

cryptica 5y ago

As reserve banks print more money, the money supply expands, this means more fiat chasing fewer goods. This is what makes house prices go up, which leads to increasing rent prices (real estate investors need the rental income to cover their mortgage repayments). Salaries, on the other hand, are negotiated up front and sometimes not re-negotiated for years... In the meantime, the currency is inflating (losing value, prices of everything going up). So by the end of the year, your salary buys you less than what you had negotiated at the start of the year. Some companies offer 2% salary increase per year; this is not enough to cover real inflation. By many accounts, the real inflation is much higher than that; the basket of goods to measure inflation has been manipulated over the years to make inflation seem smaller than it actually is. So even in those cases, employees are losing buying power over time. Besides, inflation is not a single number. Different items inflate at different rates. Money printing is creating wealth inequality which means that goods which appeal to wealthier individuals (such as real estate and other assets which provide financial independence) inflate faster than goods which appeal to the average person (which merely have survival utility).

rank0 5y ago

I believe his position is that irresponsible money printing is causing rampant inflation, which gets reflected into rent. Honestly, its not the worst logic in the world... The fear of inflation motivated me to purchase a property this year. My mortgage payment will stay the same for the life of the loan regardless of the value of USD. Hypothetically, wages should also raise with inflation but I suppose OP is saying that hasn't been his experience.

cryptica 5y ago
The only way to get a raise is to change companies. Pretty much everyone in the software industry will agree on this. Also, the way employees are hired and the way salaries are negotiated is totally unfair. There is often no logic behind it other than pedigree/family connections.
- rank0 5y ago
  > The only way to get a raise is to change companies. Pretty much everyone in the software industry will agree on this. I can certainly agree with you here. The only times I've received significant raises are when I leave, or threaten to leave. I'm getting pretty sick of hopping around every year or two...but hopping is the only time where I have any leverage.

clipradiowallet 5y ago

His comment makes perfect sense to me, you could summarize his comment as a real-life example of inflation. His dollars ability to be exchanged for goods/services is diminishing.

cwkoss 5y ago

Low interest rates play a significant role in the recent rise of REITs and corporate landlords.