4 ms·
Well, of course. Isn’t that what inflation is for? Give ‘em a raise on paper so they keep quiet. Then take it back through “the invisible tax”.
by leobg 5y ago
Well, of course. Isn’t that what inflation is for? Give ‘em a raise on paper so they keep quiet. Then take it back through “the invisible tax”.
- dragontamer 5y agoThose in debt (which is the majority of people) benefit from inflation though. Be it mortgages, car loans, or even just credit-card debts. If inflation/wage growth is 6% and your mortgage is 3% and your car payment is 5%, you're getting ahead. The people who are hurt by inflation are people holding cash and/or bonds.
- nly 5y agoOnly if your debt is fixed for term and the term is long Most mortgages in most parts of the world aren't long term fixed rate. Same is true of student debt and credit card debt.
- dragontamer 5y agoLuckily for those people, interest rates are at record lows as well. So even if you are in a variable-rate loan, you're still making it out ahead right now.
- kobalsky 5y ago> Those in debt (which is the majority of people) benefit from inflation though it's a temporal win though. it never ends well.
- naveen99 5y agoYou can also use non-debt based leverage to benefit from inflation. For example selling put spreads or buying calls on inflating stocks or etfs.
- xyzzy123 5y agoAlso creates a steady state where actual taxes are slowly increasing due to bracket creep.
- noduerme 5y agoTimely. https://www.cbsnews.com/amp/news/tax-brackets-2022-inflation-irs/ https://www.cbsnews.com/amp/news/tax-brackets-2022-inflation...