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What about all the people who are on fixed income? Their buying power is diminished with inflation.
by WaitWaitWha 5y ago
What about all the people who are on fixed income? Their buying power is diminished with inflation.
- OldTimeCoffee 5y agoVery few people are on fixed incomes, though. Social security has a yearly inflation adjustment. You would have to be on a private pension only to be on a fixed income.
- guenthert 5y agoIf 'fixed' includes zero, I don't think it's that few. There are quite a few who (try to) live of their savings. Not all are worry-free rich.
- OldTimeCoffee 5y agoI'm not 100% how to respond to this except that virtually all Americans are enrolled in SS. If you have an SSN, you're enrolled. You need 40 credits at up to 4 credits per year (~ $5500 is required to get all 4 credits). After working about 10 years (even part time) you should qualify for benefits. According to the SSA, approx 90% of Americans over 65 collect. https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf There are still hardships because it's not a full income replacement, but it's a far cry from 'not all are worry-free rich'. Edit: The majority of the remaining 10% are covered by state level public employee retirement systems who don't accumulate SSA work credits and private pensions. SSI also exists to provide 75% of the poverty line if you have extremely limited means. Here is a paper by the CRS about senior poverty. https://fas.org/sgp/crs/misc/R45791.pdf https://fas.org/sgp/crs/misc/R45791.pdf
- IdiocyInAction 5y agoThat's kind of the point of the article. He argues that upwards wage rigidity makes people dislike inflation.