4 ms·
I don't see why people think inflation hits the bottom of the wealth distribution the most. If you own your home but make the minimum payments, inflation is go
by susanasj 4y ago
I don't see why people think inflation hits the bottom of the wealth distribution the most. If you own your home but make the minimum payments, inflation is good. Your payments stay the same but the dollars are worth less, and hopefully your wages go up (as many people's have been). If you owe student debt, healthcare debt, same thing. Almost every lower middle class person has one of these kinds of debt. Inflation hurts the people that are owed money (banks, corporations, etc).
- SketchySeaBeast 4y ago> and hopefully your wages go up That's my struggle with this part, and that was my point with the less bargaining power. Everything else you say is true, but I have concerns about this bit. My wage required a job jump to increase and I'm by no means lower middle class.
- salawat 4y agoThere is a floor to how much you can make without running into severe adverse effects on survival. Inflation causes absolute value of the number represented by that floor to increase. I assure you. There is only one relative group of people local to whom that number teitching makes a big difference. Hint: If you sort by income descending, they're toward the far end.
- bcassedy 4y agoSeems negative across the board. A huge swath of Americans are living paycheck to paycheck and can't afford a $500 emergency. As inflation increases the cost of goods and services those people have even less wiggle room to handle the unexpected and/or they need to start cutting back on expenses.