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If the alternative is mass unemployment I would rather pay 10% more for eggs Job losses affect the entire economy: the rich don't care since they do not rely e

by nimish 4y ago

If the alternative is mass unemployment I would rather pay 10% more for eggs Job losses affect the entire economy: the rich don't care since they do not rely employment and wages. In contrast the wealthy are hit enormously by inflation as they start losing in real terms. The fed prioritizing inflation over unemployment is a massive hit to the working classes. Doesn't matter if eggs only increased by 2% if you lost your home because there are no more jobs.

chollida1 4y ago
> In contrast the wealthy are hit enormously by inflation as they start losing in real terms. Umm, the poor are hit far harder by inflation than the rich. And it hits everyone in a way unemployment does not, that's why its far more important to fight inflation. Ask your self this question. If inflation keeps going and interest rates go up to 10%. Who will buy the houses that come available on the market that people can no longer afford? The rich or the poor? And who will be the main sellers of those homes? The rich or the poor? https://www.brookings.edu/blog/future-development/2022/03/18/inflation-could-wreak-vengeance-on-the-worlds-poor/ https://www.brookings.edu/blog/future-development/2022/03/18... https://www.deccanherald.com/opinion/comment/does-inflation-hit-the-poor-or-the-rich-more-1112487.html https://www.deccanherald.com/opinion/comment/does-inflation-... https://goldcountrymedia.com/news/135064/how-inflation-makes-benefits-the-rich-hurts-the-poor/#:~:text=This%20happens%20because%20inflation%20hurts,way%20of%20making%20it%20up https://goldcountrymedia.com/news/135064/how-inflation-makes....
- nimish 4y ago
  The key is that wages also rise (not proportionately) in step with inflation but investment returns don't. It matters very little if eggs go up by 10% each year if wages go up by 10% each year. Of course what we have is stagflation: wage growth is not keeping up with inflation. Even then, raising interest rates to cause a recession is a really awful way to hack down a metric. Again: lose a job or lose 3% in real income a year? In contrast the billionaire losing 10% a year in real terms looks at inflation as a catastrophic outcome and would gladly sacrifice everyone else's well being to keep his numbers up. Best case scenario we end up in late 2008 with 10% unemployment but with a 10% rate. Place your bets on which drug problem will destroy the working class: opioids again?
- bombcar 4y ago
  The mortgage carrying middle class is best positioned to take advantage of inflation, as they are heavily in debt.
themitigating 4y ago
Just to note the rich almost never suffer in real terms, like food or housing. They have enough cash on hand to survive any recession or depression even if they lose their businees. Also bankruptcy laws if someone is going to mention black friday
- bombcar 4y ago
  Musk losing 99% of his wealth would still be a quite well off person, someone at the poverty line losing 1% could be in for a really hard time.

by nimish 4y ago

chollida1 4y ago

> In contrast the wealthy are hit enormously by inflation as they start losing in real terms. Umm, the poor are hit far harder by inflation than the rich. And it hits everyone in a way unemployment does not, that's why its far more important to fight inflation. Ask your self this question. If inflation keeps going and interest rates go up to 10%. Who will buy the houses that come available on the market that people can no longer afford? The rich or the poor? And who will be the main sellers of those homes? The rich or the poor? https://www.brookings.edu/blog/future-development/2022/03/18/inflation-could-wreak-vengeance-on-the-worlds-poor/ https://www.brookings.edu/blog/future-development/2022/03/18... https://www.deccanherald.com/opinion/comment/does-inflation-hit-the-poor-or-the-rich-more-1112487.html https://www.deccanherald.com/opinion/comment/does-inflation-... https://goldcountrymedia.com/news/135064/how-inflation-makes-benefits-the-rich-hurts-the-poor/#:~:text=This%20happens%20because%20inflation%20hurts,way%20of%20making%20it%20up https://goldcountrymedia.com/news/135064/how-inflation-makes....

nimish 4y ago
The key is that wages also rise (not proportionately) in step with inflation but investment returns don't. It matters very little if eggs go up by 10% each year if wages go up by 10% each year. Of course what we have is stagflation: wage growth is not keeping up with inflation. Even then, raising interest rates to cause a recession is a really awful way to hack down a metric. Again: lose a job or lose 3% in real income a year? In contrast the billionaire losing 10% a year in real terms looks at inflation as a catastrophic outcome and would gladly sacrifice everyone else's well being to keep his numbers up. Best case scenario we end up in late 2008 with 10% unemployment but with a 10% rate. Place your bets on which drug problem will destroy the working class: opioids again?
bombcar 4y ago
The mortgage carrying middle class is best positioned to take advantage of inflation, as they are heavily in debt.

themitigating 4y ago

Just to note the rich almost never suffer in real terms, like food or housing. They have enough cash on hand to survive any recession or depression even if they lose their businees. Also bankruptcy laws if someone is going to mention black friday

bombcar 4y ago
Musk losing 99% of his wealth would still be a quite well off person, someone at the poverty line losing 1% could be in for a really hard time.