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Because the British media feeds this narrative by making it look like the rich always win. The only changes in their wealth that the media draws attention to ar

by makomk 4y ago

Because the British media feeds this narrative by making it look like the rich always win. The only changes in their wealth that the media draws attention to are increases, and if there's a drop that just gives a new baseline for the next round of headlines about increases. High inflation and increased interest rates got assets down across the board? Well, that means that the better off are getting lots of "unearned income" from interest whilst normal people's wages decline in real terms, never mind that the value of whatever savings they're earning that interest on is also dropping in real terms by more than they're making back in interest.

dwallin 4y ago
Because they do always win (in aggregate, in relation to other income brackets). With changing economic situations, those with more resources have more options, and are therefore on average able to adapt more effectively. Sure there will be winners and losers in every tax bracket but a quick look at a graph of income inequality over time should disabuse you of the notion that the rich are somehow at a disadvantage in all this.
- ipaddr 4y ago
  The parent's point is that these events are not making the rich any richer than they would be. Anyone with debt is better off with higher inflation as the amount required to pay back is worth less. Anyone who gave money away for interest takes a haircut. The richer entities usually loan money so this is better for the poor with debt. If wages don't raise than this changes
  - Timon3 4y ago
    Rich people have a lot more debt than poor people. If you're too poor, nobody will loan you anything. The more money you have, the better the conditions will be which are available for you. Would a rich person ever consider something like your average payday loan? After the last couple of years with practically free loans, who do you expect to have borrowed more? The rich or the poor?
    - TheOtherHobbes 4y ago
      More than that - loans to the very rich will always have a below-inflation rate. or worst case a near-inflation rate. Loans to the poor will always have an above-inflation rate. And the poorer you get the more extreme the rates. Interestingly this is somehow not considered inflationary.

by makomk 4y ago

dwallin 4y ago

Because they do always win (in aggregate, in relation to other income brackets). With changing economic situations, those with more resources have more options, and are therefore on average able to adapt more effectively. Sure there will be winners and losers in every tax bracket but a quick look at a graph of income inequality over time should disabuse you of the notion that the rich are somehow at a disadvantage in all this.

ipaddr 4y ago
The parent's point is that these events are not making the rich any richer than they would be. Anyone with debt is better off with higher inflation as the amount required to pay back is worth less. Anyone who gave money away for interest takes a haircut. The richer entities usually loan money so this is better for the poor with debt. If wages don't raise than this changes
- Timon3 4y ago
  Rich people have a lot more debt than poor people. If you're too poor, nobody will loan you anything. The more money you have, the better the conditions will be which are available for you. Would a rich person ever consider something like your average payday loan? After the last couple of years with practically free loans, who do you expect to have borrowed more? The rich or the poor?
  - TheOtherHobbes 4y ago
    More than that - loans to the very rich will always have a below-inflation rate. or worst case a near-inflation rate. Loans to the poor will always have an above-inflation rate. And the poorer you get the more extreme the rates. Interestingly this is somehow not considered inflationary.