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The petit bourgeois are indeed included in the investor class in this hypothetical. Bailouts of defined-benefit pension plans would probably only be necessary i
by scythe 4y ago
The petit bourgeois are indeed included in the investor class in this hypothetical. Bailouts of defined-benefit pension plans would probably only be necessary if the high-interest regime continues for many years. The fact is that real wages have declined substantially YoY [1] for the working class due to price increases and this is a typical impact of a high-inflation environment. Protecting homeowners by bleeding the people who still have adult roommates is morally decrepit.
1: https://www.bls.gov/news.release/realer.nr0.htm https://www.bls.gov/news.release/realer.nr0.htm
- lotsofpulp 4y ago> Bailouts of defined-benefit pension plans would probably only be necessary if the high-interest regime continues for many years. In my perspective, the bailout has been happening for decades, every time the federal government steps in to prevent broad market prices from substantially declining. Not only have politicians been keeping labor costs low by using high ROI assumptions, they have been underfunding DB pension plans even with those rosy assumptions providing low costs for budgeting purposes. For this reason, I think it is safe to assume the government will backstop equity prices over the long term (5+ years). It would not be politically popular amongst the voting population to let them fall. https://www.pewtrusts.org/en/research-and-analysis/articles/2022/07/07/states-unfunded-pension-liabilities-persist-as-major-long-term-challenge https://www.pewtrusts.org/en/research-and-analysis/articles/...