4 ms·

This is a boon for anyone with a fixed mortgage, aka a big chunk of the middle class. Other than gas prices increasing I don’t understand what the average perso

This is a boon for anyone with a fixed mortgage, aka a big chunk of the middle class. Other than gas prices increasing I don’t understand what the average person is worried about. Their biggest monthly expense (mortgage) is effectively plummeting month by month, while the value of their home has increased significantly. Even if the stock market is plummeting, most people have the bulk of their net worth tied to their home, not stocks. Their wages are keeping up with inflation anyway. All that is well worth the ~$100 extra per month in gas. That can be mitigated somewhat anyway by driving less, taking public transit, or getting a hybrid/electric car. The main losers seem to be renters, and bankers.

throwawaymaths 4y ago
Your argument only makes sense if you are getting pay raises that are commensurate with inflation. Not everyone is. Some people might lose jobs (or not get one amidst a hiring freeze) because the nominal non labor cost of operating the business might go up than they can increase prices (or labor costs could go up because other employees are demanding raises). >the value of their home has increased significantly This causes their property taxes to go up, too, adding to the pressure. > The main losers seem to be renters Home ownership rates are decreasing; and you really forgot people on fixed incomes or no incomes (living on the street).
- jliptzin 4y ago
  Of course, no one ever expects renters to do well in the long run economically in a capitalist system, regardless of what the inflation rate is. And same is true for people living on the street. Those groups don't do that well in any economic cycle, that's why the conventional wisdom has always been try to own a home. I am talking about middle class mortgage holders, people who do own homes. For the first time ever it seems like they are the ones coming out on top in this economic "crisis" but they seem to be the ones complaining about it the loudest.
  - throwawaymaths 4y ago
    I was complaining about inflation when I was making 26k and working more hours than was "legally allowed". I was also complaining about inflation when I was Lyft driver. I promise you other Lyft drivers were worried about inflation too.
myth_drannon 4y ago
"Their wages are keeping up with inflation anyway" - That's absolutely not true. At best they get 1% percent negotiated by a contract.
- jliptzin 4y ago
  Isn't that what the "problem" is? Tight labor market => higher wages => people have more money to spend => higher prices. Wages are absolutely keeping up with inflation or even surpassing it, I'm seeing it in jobs I'm hiring for. All my employees received a minimum 10% pay increase over the last 12 months. If your pay only went up 1% this year you need to find work elsewhere. With a tight labor market that shouldn't be hard.
  - myth_drannon 4y ago
    Not everyone is a software developer. For example nurses, paramedics, daycare workes which experience extremely tight labor market the salaries are not going up. Actually they slashed the pandemic bonuses so the salaries are going down. They are bringing people out of retirement that are willing to work for the current wages. My son's daycare had a new educator who could barely walk with a cane(not to mention to lift a child) because yonger workers refuse to work for the low salaries.
    - jliptzin 4y ago
      I am not talking about software developers, I am talking warehouse workers, customer support specialists, bookkeepers. If they're having trouble finding employees it simply means they're not offering enough money for the job. Ask what the CEO is paying himself if he's complaining about not being able to find workers. I post ads in the $25-30/hr range and get about 500 resumes in 2 days, plenty of qualified applicants to choose from.

throwawaymaths 4y ago

Your argument only makes sense if you are getting pay raises that are commensurate with inflation. Not everyone is. Some people might lose jobs (or not get one amidst a hiring freeze) because the nominal non labor cost of operating the business might go up than they can increase prices (or labor costs could go up because other employees are demanding raises). >the value of their home has increased significantly This causes their property taxes to go up, too, adding to the pressure. > The main losers seem to be renters Home ownership rates are decreasing; and you really forgot people on fixed incomes or no incomes (living on the street).

jliptzin 4y ago
Of course, no one ever expects renters to do well in the long run economically in a capitalist system, regardless of what the inflation rate is. And same is true for people living on the street. Those groups don't do that well in any economic cycle, that's why the conventional wisdom has always been try to own a home. I am talking about middle class mortgage holders, people who do own homes. For the first time ever it seems like they are the ones coming out on top in this economic "crisis" but they seem to be the ones complaining about it the loudest.
- throwawaymaths 4y ago
  I was complaining about inflation when I was making 26k and working more hours than was "legally allowed". I was also complaining about inflation when I was Lyft driver. I promise you other Lyft drivers were worried about inflation too.

myth_drannon 4y ago

"Their wages are keeping up with inflation anyway" - That's absolutely not true. At best they get 1% percent negotiated by a contract.

jliptzin 4y ago
Isn't that what the "problem" is? Tight labor market => higher wages => people have more money to spend => higher prices. Wages are absolutely keeping up with inflation or even surpassing it, I'm seeing it in jobs I'm hiring for. All my employees received a minimum 10% pay increase over the last 12 months. If your pay only went up 1% this year you need to find work elsewhere. With a tight labor market that shouldn't be hard.
- myth_drannon 4y ago
  Not everyone is a software developer. For example nurses, paramedics, daycare workes which experience extremely tight labor market the salaries are not going up. Actually they slashed the pandemic bonuses so the salaries are going down. They are bringing people out of retirement that are willing to work for the current wages. My son's daycare had a new educator who could barely walk with a cane(not to mention to lift a child) because yonger workers refuse to work for the low salaries.
  - jliptzin 4y ago
    I am not talking about software developers, I am talking warehouse workers, customer support specialists, bookkeepers. If they're having trouble finding employees it simply means they're not offering enough money for the job. Ask what the CEO is paying himself if he's complaining about not being able to find workers. I post ads in the $25-30/hr range and get about 500 resumes in 2 days, plenty of qualified applicants to choose from.