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Most middle class has loans, which inflation helps, and don't hold savings in cash, but in assets like houses and 401k, both of which inflation helps. Who hold
by ChrisLomont 5y ago
Most middle class has loans, which inflation helps, and don't hold savings in cash, but in assets like houses and 401k, both of which inflation helps.
Who holds lifetime savings in cash? That would be a terrible idea.
Employers generally are forced to increase wages, although lagged, else people start to leave.
Inflation isn't a tax on the middle class. It transfers effective wealth from lenders to borrowers.
- landemva 5y ago'Who holds lifetime savings in cash? That would be a terrible idea' Everyone is forced to speculate because the fiat currency is no longer a reasonable store of value. The poorest, who have no investments, typically do the worst through inflationary years.
- ChrisLomont 5y agoThe poorest tend to have loans, car, mortgage, etc. and no significant cash, so inflation helps them by lowering their effective debt. Fiat has never been a good store of wealth, ever, in any country, in any time. Nothing there has changed, despite your beliefs. And pretty much no one with much long term savings keeps it all in cash, there's too many better places to save.