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> 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

> 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.

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.