3 ms·
You're assuming that inflation comes down. Our money supply was debased by at least 30%. So far inflation hasn't even made up for half of that. Even if you as
by onlyrealcuzzo 4y ago
You're assuming that inflation comes down.
Our money supply was debased by at least 30%. So far inflation hasn't even made up for half of that.
Even if you assume we go into a recession, it's not going to be long before 2019 dollars are worth $0.70.
$30k was the norm 3 years ago. But it's likely in a couple of years that $40k is the new $30k - because money will have lost that much value.
In that case, people won't really be as far underwater.
- owlbite 4y agoThis only works if wage growth keeps up with the inflation.
- onlyrealcuzzo 4y agoWages have generally tracked inflation - slightly behind the curve. They led inflation (maybe were a big contributor to inflation) this time around. I'm not sure why you're convinced that wages aren't going to keep up with inflation.
- deleted 4y ago[deleted]
- nemo44x 4y agoAt least for cars, most people have to finance them so you would assume there is an interest rate where the monthly payments are too high for enough people to bring prices down. A lot of what has gone on the last couple years were extremely low interest rates coupled with the money supply increase. Can probably handle one or the other but not both.
- avgDev 4y agoMark up IS NOT INFLATION. Higher MSRP would account for inflation. Car prices actually have not raised that much over the years, as improvements have been made to the manufacturing process to keep costs down.