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This depends upon how much is required to be “rich”. The wealthiest people on Earth tend to use the most debt, and debt likes inflation. You pay off your debt w
by BirAdam 4y ago
This depends upon how much is required to be “rich”. The wealthiest people on Earth tend to use the most debt, and debt likes inflation. You pay off your debt with cheaper dollars. Additionally, it is precisely during periods of recession and/or inflation that we see the disparity between the wealthiest and poorest widen most quickly.
- sonotathrowaway 4y ago> Building on the existing literature, we just published a working paper based on a sample of 10 OECD countries since 1970 that isolates the impact of inflation from other factors driving income inequality. > After accounting for the effect of other economic variables, we find a negative correlation between long term inflation and income inequality for low inflation rates. The results suggest that this link turns positive for higher inflation rates (i.e. above a threshold that we estimate at an inflation rate of 13%). These results are in line with other previous studies, which also find a U-shaped relationship between inflation and income inequality (Galli and van der Hoeven, 2001, Bulir, 2001, and Auda, 2010). However, they contradict the strong and widespread belief that inflation hurts the poor more than the rich and thus increases income inequality. https://www.cepweb.org/inflation-and-inequality/ https://www.cepweb.org/inflation-and-inequality/
- BirAdam 4y agoI was using the superlative. “Wealthiest”. This is billionaires, not millionaires. Not merely rich, but the most rich.