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I think a more widespread opinion is that inflation is a wealth transfer to borrowers from lenders. Households borrowing in the form of a mortgage might lend in
by ttyprintk 3y ago
I think a more widespread opinion is that inflation is a wealth transfer to borrowers from lenders. Households borrowing in the form of a mortgage might lend in the form of a savings account. Older people access income through entitlement programs, without borrowing. I think this supports your argument better, that certain media lie about inflation because very few of their captive audience are borrowers.
- bryanlarsen 3y agoSeniors who are living on entitlement programs are the ones likely the hardest hit by inflation, and they're neither lenders nor borrowers.
- ttyprintk 3y agoI think seniors are lenders, recovering their investments from mutual funds. They’re only hard-hit when their retirement accounts failed to outpace inflation. The usual pattern is to move from stocks to bonds, so we observe seniors grappling with the performance of bonds. We don’t look deeper to see their speculative lending into the stock boom of 1980-2000.
- bryanlarsen 3y agoSome seniors are lenders, living off their retirement savings. Some seniors are living without retirement savings, living on $1200/month of social security.