4 ms·
The have nots don’t have anything to lose by definition, so a recession, particularly a deflationary one, hurts the haves more.
by cudgy 4y ago
The have nots don’t have anything to lose by definition, so a recession, particularly a deflationary one, hurts the haves more.
- lazide 4y agoNot really. The ‘have not’s’ go from having an under the table job that lets them eat decent and have a roof over their head (even if they don’t own it), to homelessness or death. Or someone already homeless to just be, well, dead, as more predators are coming out and support options dry up. The have’s can generally insulate somewhat against the worst case scenario - even bankruptcy for instance will protect a primary residence, car, and other things necessary to work and earn income. The more you have, the more you can prevent the worst outcomes, and the more you can leverage what you have to take advantage of favorable long term conditions because you don’t have a gun against your head. They haves by definition may lose more net worth in absolute terms (someone with $10 in the bank can’t lose $10 million by definition), but that doesn’t mean they’re at the most risk of the biggest real losses. Things like marriages, health, life, wealth (in a life altering way), etc. Even if musk loses 10’s of billions, he’ll still be wealthier than all but a small handful of people in the world for instance, and won’t likely have any meaningful change in his day to day or long term circumstances.