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>>Money printing is a hidden tax that hits especially hard on those that don't have a lot of savings Wouldn't inflation hurt people with a lot of cash savings,

>>Money printing is a hidden tax that hits especially hard on those that don't have a lot of savings Wouldn't inflation hurt people with a lot of cash savings, the most? Also, Wouldn't people with a lot of debt welcome inflation. Don't poor people tend to have the most amount of debt relative to their networth? Isn't their a student debt crisis, that can be helped out by inflation. The only people I really see getting hurt by inflation are those hoarding cash, which there is a ton of ways to put that money to work. You can buy fractional stocks for less then a dollar. I haven't ever heard anyone say cash is good store of value, so when coiners present this argument it feels like a real strawman. The dollars value comes from its predictability, unless some catastrophe happen affecting food supply,I know next year food will be about the same as it is right now. I have no idea how much bitcoin it will cost could be 10x or could be 10%, this makes it hard to plan and hard to run an economy.

Sohcahtoa82 5y ago
> Also, Wouldn't people with a lot of debt welcome inflation. Don't poor people tend to have the most amount of debt relative to their networth? This is only true if wages keep up with inflation. Many will claim they haven't.
bko 5y ago
> Wouldn't inflation hurt people with a lot of cash savings, the most? Almost no one with a vast amount of wealth keeps their wealth in cash. > Also, Wouldn't people with a lot of debt welcome inflation. Don't poor people tend to have the most amount of debt relative to their networth? Not necessarily. The poorest households hold less than their fair share of mortgage debt, but they hold more than their share of consumer debt. The bottom half of households by wealth hold almost 54% of consumer debt. Consumer debt includes credit cards, student loans and car loans. That distribution isn’t a surprise, either [0]. If you rely on debt for every day purchases (credit card revolving debt), higher prices don't help you out. If you have inflation in the form of home valuations and you own a home (perhaps w/ a mortgage), you're better off in that regard > Isn't their a student debt crisis, that can be helped out by inflation. Inflation doesn't necessarily mean your salary goes up. Salaries for low wage workers is fairly sticky. > The only people I really see getting hurt by inflation are those hoarding cash, which there is a ton of ways to put that money to work. You can buy fractional stocks for less then a dollar. If you're on a fixed salary, or your salary doesn't go up by at least the inflation amount you're worse off. And if you have a large percentage of your income go to pay for every day living expenses, you're also worse off. The dollar value is predictable until it's not. There are plenty of examples of hyperinflation that turned a country on its head. [0] https://www.barrons.com/articles/rich-borrow-mortgates-consumer-debt-credit-cards-federal-reserve-fred-51573509617 https://www.barrons.com/articles/rich-borrow-mortgates-consu...

Sohcahtoa82 5y ago

> Also, Wouldn't people with a lot of debt welcome inflation. Don't poor people tend to have the most amount of debt relative to their networth? This is only true if wages keep up with inflation. Many will claim they haven't.

bko 5y ago

> Wouldn't inflation hurt people with a lot of cash savings, the most? Almost no one with a vast amount of wealth keeps their wealth in cash. > Also, Wouldn't people with a lot of debt welcome inflation. Don't poor people tend to have the most amount of debt relative to their networth? Not necessarily. The poorest households hold less than their fair share of mortgage debt, but they hold more than their share of consumer debt. The bottom half of households by wealth hold almost 54% of consumer debt. Consumer debt includes credit cards, student loans and car loans. That distribution isn’t a surprise, either [0]. If you rely on debt for every day purchases (credit card revolving debt), higher prices don't help you out. If you have inflation in the form of home valuations and you own a home (perhaps w/ a mortgage), you're better off in that regard > Isn't their a student debt crisis, that can be helped out by inflation. Inflation doesn't necessarily mean your salary goes up. Salaries for low wage workers is fairly sticky. > The only people I really see getting hurt by inflation are those hoarding cash, which there is a ton of ways to put that money to work. You can buy fractional stocks for less then a dollar. If you're on a fixed salary, or your salary doesn't go up by at least the inflation amount you're worse off. And if you have a large percentage of your income go to pay for every day living expenses, you're also worse off. The dollar value is predictable until it's not. There are plenty of examples of hyperinflation that turned a country on its head. [0] https://www.barrons.com/articles/rich-borrow-mortgates-consumer-debt-credit-cards-federal-reserve-fred-51573509617 https://www.barrons.com/articles/rich-borrow-mortgates-consu...