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> if you're a worker, and you aren't saving (or trying to save) a pile of cash, inflation is net-zero for you But people should be able to save. So that they c

> if you're a worker, and you aren't saving (or trying to save) a pile of cash, inflation is net-zero for you But people should be able to save. So that they can buy a house or apartment for themselves and their family. Without having to take up a loan to do so.

vkou 3y ago
> But people should be able to save. If everyone saves, the economy will collapse. Every dollar you save is a dollar that someone else doesn't earn. In an inflationary environment, people can still save by buying equities. This has tax and timing implications... But it's still possible. > Without having to take up a loan to do so. The existence of 25, 30, 35 year mortgages driving housing prices into the stratosphere is a separate problem, but not one you're ever going to unwind without having existing mortgage holders stringing you up from a lamp post. That's a completely separate issue to inflation.
- ClumsyPilot 3y ago
  > If everyone saves, the economy will collapse. Every dollar you save is a dollar that someone else doesn't earn Where is the plan to make billionaires spend all their savings? That’s the money I personally didn’t earn! Or is it saving for them, nothing for me?
  - Kranar 3y ago
    Billionaires have very little in savings relative to their wealth. Most billionaires have their wealth tied to ownership of a small number of companies, usually ones they founded.
yongjik 3y ago
If you want to buy a house or apartment, you're probably looking at at least several hundred thousand dollars, and average working class people would need years to save that much. In other words, we're looking at someone with a few hundred thousand dollars, held for a few years. At which point, what's stopping them from keeping the money in an index fund, instead of under the proverbial mattress? Also, taking a mortgage is a totally normal thing to do when buying a house, it will give you years of enjoying your home ownership, and in this case inflation actually works for you!
- bsdpufferfish 3y ago
  > what's stopping them from keeping the money in an index fund Risk of principal loss.

vkou 3y ago

> But people should be able to save. If everyone saves, the economy will collapse. Every dollar you save is a dollar that someone else doesn't earn. In an inflationary environment, people can still save by buying equities. This has tax and timing implications... But it's still possible. > Without having to take up a loan to do so. The existence of 25, 30, 35 year mortgages driving housing prices into the stratosphere is a separate problem, but not one you're ever going to unwind without having existing mortgage holders stringing you up from a lamp post. That's a completely separate issue to inflation.

ClumsyPilot 3y ago
> If everyone saves, the economy will collapse. Every dollar you save is a dollar that someone else doesn't earn Where is the plan to make billionaires spend all their savings? That’s the money I personally didn’t earn! Or is it saving for them, nothing for me?
- Kranar 3y ago
  Billionaires have very little in savings relative to their wealth. Most billionaires have their wealth tied to ownership of a small number of companies, usually ones they founded.

yongjik 3y ago

If you want to buy a house or apartment, you're probably looking at at least several hundred thousand dollars, and average working class people would need years to save that much. In other words, we're looking at someone with a few hundred thousand dollars, held for a few years. At which point, what's stopping them from keeping the money in an index fund, instead of under the proverbial mattress? Also, taking a mortgage is a totally normal thing to do when buying a house, it will give you years of enjoying your home ownership, and in this case inflation actually works for you!

bsdpufferfish 3y ago
> what's stopping them from keeping the money in an index fund Risk of principal loss.