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But for the poor, a 2x in cost of milk isn’t as burdensome when there’s a 1.2x in hourly wage. Plus, the cost of borrowing to buy that new car went down. Even t
by nipponese 5y ago
But for the poor, a 2x in cost of milk isn’t as burdensome when there’s a 1.2x in hourly wage. Plus, the cost of borrowing to buy that new car went down. Even though I hate this current inflation in ALL non-cash assets, it’s been generally positive for the poor, in the short-term, anyway.
- lumost 5y agoIs it really though? As relative demand for consumption falls there is less demand for labor. Wages stagnate and fall while income concentrates further. Most poor people wish most for a path out of poverty, but what we've seen is that the paths out have become less successful and more expensive e.g. College.
- nipponese 5y agoI said short-term. Which is all voters care about.
- merpnderp 5y agoHow is a doubling in prices offset by a 20% increase in wages? And has there every been a time when high inflation was offset by and even higher increase in wages? Wages never keep up and inflation always hurts the poor. A rich person couldn't care less if milk's price doubles. They'll drink just as much milk. A poor person who's banking on that yearly bonus/bump in pay to pay for all the next year's inflating milk, is going to have to do without some milk.
- gshubert17 5y agoIf it's only the cost of milk that has doubled, I agree that a 20% hourly wage increase will cover it. It's a different story if the overall cost-of-living outpaces wages.