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> If inflation were allowed to run a bit higher, it could deliver a long-overdue win for young people who have had to face a combination of stagnant wages and r
by uticus 5y ago
> If inflation were allowed to run a bit higher, it could deliver a long-overdue win for young people who have had to face a combination of stagnant wages and rising housing costs.
My understanding is that inflation hurts fixed income, especially the elderly who don't have the advantage of young people where they can change jobs or absorb risk as readily.
If that's true, then the "wrongness" of inflation has been pinpointed - it's ethically wrong to financially hurt our elderly.
- namdnay 5y ago> it's ethically wrong to financially hurt our elderly. Why would it be more wrong to hurt the elderly than the young? The elderly are far wealthier
- cableshaft 5y agoYouth don't have as much (or any) savings to lose and can switch jobs / demand a raise to make a higher wage. Anything they do have saved is probably invested and increasing in value along with inflation. Elderly just have less money to eke a living on, and can no longer get a job (most likely). Everyone gets hurt by inflation (well, maybe not if you have a ton of debt), but the elderly are stuck and can't do anything about it.
- uticus 5y ago> The elderly are far wealthier Ignoring the stats, please think long term about your implications. Let's imagine you are a young person. Your wage increase means you have $20 to save for retirement, vs $10. However, if inflation remains average overall, by the time you get to retirement, your $10 buys $5 worth of stuff. On top of that, you are now old. A young person decides you are able to pay more because you've saved more (having had more time to save). Your $10 in retirement is reduced to $8, to buy $5 worth of stuff.