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Would you rather hold cash or a home during a period of inflation. Most people wisely chose to put it in a house. With a 7% compound interest rate, your money d
by dukeofdoom 4y ago
Would you rather hold cash or a home during a period of inflation. Most people wisely chose to put it in a house. With a 7% compound interest rate, your money doubles every 10 years. With a 7% inflation rate, I believe it halves in the same time frame. Perhaps it's not that houses are worth more, it's that money is worth less. A 350k house in 2010 should be 700k now if the real inflation was 7%. And at least where I live, that checks out. However, employers haven't raised wages to keep up with this new reality.
- 01100011 4y agoThat's great unless we stagflate and people lose jobs or income. Hard to say what we're looking at now.
- dukeofdoom 4y agoOr we might see a level of inflation not seen in decades. The kind of inflation we saw before the fall of Communism. Where communist governments kept printing more and more money while working people could buy less and less with it. It got so bad that eventually they just barely had enough for food.
- seoaeu 4y ago> However, employers haven't raised wages to keep up with this new reality. No, they've instead raised wages to attract employees, which they have to do because of the labor "shortage".