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The rich doesn’t care about the price of milk. They care about the price of stocks, bonds, real estate, etc. which make up the bulk of their purchases. These as
by voisin 4y ago
The rich doesn’t care about the price of milk. They care about the price of stocks, bonds, real estate, etc. which make up the bulk of their purchases. These assets have experienced deflation over the period you are pointing to the price of milk inflating. CPI inflation isn’t a tax on the cash held by the wealthy.
- benj111 4y agoWhat time period? My position is that you don't know ahead of time what assets will rise and fall, but in the long term stocks will beat inflation. And if you want to preserve your wealth so you don't have to worry about the cost of milk you will need to beat inflation. They care about stocks, bonds, and real estate precisely because of inflation. Because if they don't beat inflation they get poorer every year. If you don't invest you are guaranteed to lose to inflation, that's why people invest in riskier assets. They don't do it because it's fun.