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Inflation hurts those without assets most (the poor). When you see pundits, opinion writers, and politicians try to explain away inflation as temporary, no big
by seibelj 5y ago
Inflation hurts those without assets most (the poor). When you see pundits, opinion writers, and politicians try to explain away inflation as temporary, no big deal, a “first world” problem, “only” 5%, and so on just remember it’s a scam. They are stealing money from people who can’t afford assets, like houses and stocks, which protect the rich.
- neartheplain 5y agoIt's a double-edged sword. For people with debt, the value of their debt decreases as inflation rises. If salaries rise with inflation, even with some lag, the debt becomes easier to repay.
- seibelj 5y agoThere is a small benefit. However it’s a negative to the lenders which include many socially advantageous institutions like pension funds which purchase securitized debt. The negatives are so numerous it’s a struggle to find any upsides. Luckily I am rich and own property with government-subsidized fixed rate mortgages so I will ride out all the terrible outcomes with a shrug.
- cudgy 5y agoWhile your stock portfolio drops massively as people move to i-bonds/commodities and your property prices fall as well since noone can afford to buy property at the higher interest rates.