3 ms·

On the contrary: a large number of the "poor" have ~zero or negative net worth, so inflation (unless extreme) doesn't affect them negatively.

dominotw 5y ago
> so inflation (unless extreme) doesn't affect them negatively. Don't see how rising prices doesn't affect them. My MIL is on fixed income and she says she is spending a lot more now on necessities than last year. Unless wages were adjusted for inflation( which they aren't) they will bear the brunt of inflation. Most ppl here dont' even notice grocery bills going up.
throwaway0a5e 5y ago
This is a BS talking point. Inflation screws people who's money comes from wages and who's wages are inflated slower than inflation increases costs (which is always how it goes down) and living paycheck to paycheck turns into having to choose what bills to pay. Your ability to buy assets (which increase with inflation) is also depreciated so there's little hope of weathering it unscathed. The people helped by inflation are the people with marketable skills and the opportunity to job hop who also happen to be using debt to live right up to the limit of their means and who can afford to buy assets (stocks, a home, etc). Statistically these people are highly over-represented on HN vs the population as a whole.
engineer_22 5y ago
Inflation affects the poor much more than it does the rich. Rich people just spend more on their necessities, their living standard doesn't change, since they have assets to dip into. OTOH poor people have to make tough choices with limited income, and meager savings. Sometimes this means paying rent instead of buying food. Fix the car to get to work, instead of buying school clothes for their children. You should really examine your framing of the situation.
wing-_-nuts 5y ago
It does hurt the poor. The poor pay more for goods and services, and they don't have much cushion to begin with. Inflation definitely helps those in debt, as you're now paying down your mortgage or car loan with dollars that are worth less. People with lots of debt are not necessarily 'poor'. They use debt as leverage. Either directly or indirectly.
j4yav 5y ago
This is not correct. Employers of the poor are not increasing wages of their employees to track inflation, so from their experience everything just gets more expensive.

dominotw 5y ago

> so inflation (unless extreme) doesn't affect them negatively. Don't see how rising prices doesn't affect them. My MIL is on fixed income and she says she is spending a lot more now on necessities than last year. Unless wages were adjusted for inflation( which they aren't) they will bear the brunt of inflation. Most ppl here dont' even notice grocery bills going up.

throwaway0a5e 5y ago

This is a BS talking point. Inflation screws people who's money comes from wages and who's wages are inflated slower than inflation increases costs (which is always how it goes down) and living paycheck to paycheck turns into having to choose what bills to pay. Your ability to buy assets (which increase with inflation) is also depreciated so there's little hope of weathering it unscathed. The people helped by inflation are the people with marketable skills and the opportunity to job hop who also happen to be using debt to live right up to the limit of their means and who can afford to buy assets (stocks, a home, etc). Statistically these people are highly over-represented on HN vs the population as a whole.

engineer_22 5y ago

Inflation affects the poor much more than it does the rich. Rich people just spend more on their necessities, their living standard doesn't change, since they have assets to dip into. OTOH poor people have to make tough choices with limited income, and meager savings. Sometimes this means paying rent instead of buying food. Fix the car to get to work, instead of buying school clothes for their children. You should really examine your framing of the situation.

wing-_-nuts 5y ago

It does hurt the poor. The poor pay more for goods and services, and they don't have much cushion to begin with. Inflation definitely helps those in debt, as you're now paying down your mortgage or car loan with dollars that are worth less. People with lots of debt are not necessarily 'poor'. They use debt as leverage. Either directly or indirectly.

j4yav 5y ago

This is not correct. Employers of the poor are not increasing wages of their employees to track inflation, so from their experience everything just gets more expensive.