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Inflation does not cause wealth concentration. Inflation acts as a tax on hoarding money and reduces wealth concentration.
by lamontcg 5y ago
Inflation does not cause wealth concentration. Inflation acts as a tax on hoarding money and reduces wealth concentration.
- Geee 5y agoWealthy don't hoard money. They hoard assets which appreciate with inflation, and they can get cheap debt against their assets. Inflation affects the poor the most, because their net worth is in cash, and they are dependent on their wage which doesn't increase hand in hand with asset prices.