5 ms·
In a nutshell if I have enough assets that generate lets say for example 6% return and can borrow cheaply like at 1% then I can't lose. Money makes money unlike
by kbrisso 5y ago
In a nutshell if I have enough assets that generate lets say for example 6% return and can borrow cheaply like at 1% then I can't lose. Money makes money unlike the poor who borrow at 19%. Inflation benefits the wealthy because their assets go up in value and then that "perceived wealth" gives them access to more cheap money as collateral.
- wbsss4412 5y agoOutsized returns on capital happen with or without an inflationary environment. The phenomenon you are describing has existed since before central banking was established.
- imtringued 5y agoThe problem is that interest redistributes wealth since it is based on how much you already own. Even if you were paid 19% interest and the rich not you would not have enough money to break even.