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>If your pay is above your rate of spending (i.e. you are a saver), then you can get by with a raise less than inflation and be the same off. Inflation hits 's
by sparrish 3y ago
>If your pay is above your rate of spending (i.e. you are a saver), then you can get by with a raise less than inflation and be the same off.
Inflation hits 'saver's harder because the money sitting in the bank is worth less than if they had purchased a durable good that could possibly be sold for more later.
- wdpk 3y agothat's the reason, the article also gives as an advice for savers to invest into income producing assets which also produce proportionally more income as inflation rises instead of sitting on cash.
- AstralStorm 3y agoThere are no such assets. Unless you consider slave labor one of these. There's only so much you cannot increase wages to compensate before people will take matters into their own hands.
- lupire 3y agoInflation hits cash savers. Cash is currency, not a store value. Durable goods are a form of savings.
- AstralStorm 3y agoThere is no nonperishable good. Most everywhere you're expected to pay taxes for land, hardware gets used up and requires maintenance etc. Resources can get obsolete and lose value that way too. So this strategy is not long term savings either.
- lupire 3y agoPrecious metal.