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It’s not just about on demand online services. Inflation is sky high everywhere, that will eat up a lot of convenience in daily life. There is a small chance th

It’s not just about on demand online services. Inflation is sky high everywhere, that will eat up a lot of convenience in daily life. There is a small chance that this will reduce wealth inequality but it may be only temporary.

jeromegv 4y ago
Did inflation in the 70s/80s destroyed convenience?
adventured 4y ago
> Inflation is sky high everywhere, that will eat up a lot of convenience in daily life. There is a small chance that this will reduce wealth inequality but it may be only temporary. High rates of inflation increases wealth inequality over time. Those working paycheck to paycheck (or anything close to that; ie income dependent) can't outrun it, attempt to hedge against it, or typically even keep up with it. They rapidly fall behind. Their standard of living gets demolished quickly, as they're very sensitive to price increases on staple goods, energy costs (whether heating or gasoline et al.), or rent. The capital / asset classes can keep up with or outrun inflation however. And the impact on them in terms of standard of living is entirely trivial. Elon Musk at $200 billion isn't much richer than Bill Gates was during his peak circa 1999-2000. Inflation adjusted they're quite close. The rich have kept up with inflation because they own assets that are capable of doing so (primarily equities, although other rich-person asset classes have done moderately well also, such as art and extremely valuable real-estate), the rest of the people largely have not kept up (and never will in the case of high inflation). On top of this, the Fed's perma low rate program, required by the US Government's debt situation, bolsters the wealth inequality significantly by artificially inflating assets such as equities and housing. Workers primarily do well in environments of low inflation with a supply / demand imbalance for labor (in favor of labor). That environment existed, most recently, in a stable manner, in parts of the 1990s and from roughly 2014-Covid.

jeromegv 4y ago

Did inflation in the 70s/80s destroyed convenience?

adventured 4y ago

> Inflation is sky high everywhere, that will eat up a lot of convenience in daily life. There is a small chance that this will reduce wealth inequality but it may be only temporary. High rates of inflation increases wealth inequality over time. Those working paycheck to paycheck (or anything close to that; ie income dependent) can't outrun it, attempt to hedge against it, or typically even keep up with it. They rapidly fall behind. Their standard of living gets demolished quickly, as they're very sensitive to price increases on staple goods, energy costs (whether heating or gasoline et al.), or rent. The capital / asset classes can keep up with or outrun inflation however. And the impact on them in terms of standard of living is entirely trivial. Elon Musk at $200 billion isn't much richer than Bill Gates was during his peak circa 1999-2000. Inflation adjusted they're quite close. The rich have kept up with inflation because they own assets that are capable of doing so (primarily equities, although other rich-person asset classes have done moderately well also, such as art and extremely valuable real-estate), the rest of the people largely have not kept up (and never will in the case of high inflation). On top of this, the Fed's perma low rate program, required by the US Government's debt situation, bolsters the wealth inequality significantly by artificially inflating assets such as equities and housing. Workers primarily do well in environments of low inflation with a supply / demand imbalance for labor (in favor of labor). That environment existed, most recently, in a stable manner, in parts of the 1990s and from roughly 2014-Covid.