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The issue is that people are forced to hold cash, and this disproportionately impacts the low class that are not financially educated and do not own or understa

The issue is that people are forced to hold cash, and this disproportionately impacts the low class that are not financially educated and do not own or understand stocks, bonds, real estate. Inflationary currency is a class warfare attack on the poor. Stocks, bonds, real estate are not a potential replacement to fix this malicious situation because they are not suitable for transactions. It also allows creep into many metrics such as minimum wage which are not fairly adjusted. https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/

imtringued 5y ago
Inflation has been at roughly 2% for 20 years. It's been below 5% for at least 40 years. If high inflation is really that bad for the "low class" then how come they are doing so poorly despite avoiding it for so long?
- cratermoon 5y ago
  Your insight is doubly poignant because even though inflation has been thoroughly throttled for most of the time Paul Graham has been alive, the average American worker still somehow has ended up earning less, in inflation adjusted dollars, than 40 years ago. https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/ https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us... Think about that. In 40 years the average worker hasn't even gotten a 5% raise.
  - afrodc_ 5y ago
    So that points to it not being a fiat currency issue, but more something along the lines of labor exploitation? Excluding some industries, there has been no forcing factor to increase wages and the outsourcing of labor just taking money off the table entirely. That's in stark contrast to incredible year over year profits for corps.
    - cratermoon 5y ago
      > something along the lines of labor exploitation That's a gentle way of putting it, but essentially correct.
- ajkdhcb2 5y ago
  The world isn't only USA. And even those percentages add up to be significant over time. I have known people directly that hold all their savings in cash for decades because they dont understand how to invest. It is catastrophic when you consider compound effects

imtringued 5y ago

Inflation has been at roughly 2% for 20 years. It's been below 5% for at least 40 years. If high inflation is really that bad for the "low class" then how come they are doing so poorly despite avoiding it for so long?

cratermoon 5y ago
Your insight is doubly poignant because even though inflation has been thoroughly throttled for most of the time Paul Graham has been alive, the average American worker still somehow has ended up earning less, in inflation adjusted dollars, than 40 years ago. https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/ https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us... Think about that. In 40 years the average worker hasn't even gotten a 5% raise.
- afrodc_ 5y ago
  So that points to it not being a fiat currency issue, but more something along the lines of labor exploitation? Excluding some industries, there has been no forcing factor to increase wages and the outsourcing of labor just taking money off the table entirely. That's in stark contrast to incredible year over year profits for corps.
  - cratermoon 5y ago
    > something along the lines of labor exploitation That's a gentle way of putting it, but essentially correct.
ajkdhcb2 5y ago
The world isn't only USA. And even those percentages add up to be significant over time. I have known people directly that hold all their savings in cash for decades because they dont understand how to invest. It is catastrophic when you consider compound effects