4 ms·

You make $3, rent costs $1, you owe $300, it takes 150 to repay your debt Inflation doubles everything You make $6, rent costs $2, you owe $300, it takes 75 t

by chgs 2y ago

You make $3, rent costs $1, you owe $300, it takes 150 to repay your debt Inflation doubles everything You make $6, rent costs $2, you owe $300, it takes 75 to repay debt The person so wealthy they lent you money loses out, you gain.

caseysoftware 2y ago
If that's universally true, why would lenders lend in a high inflationary environment?
- _yb2s 2y ago
  The interest is usually still more than inflation, they just make less money- and the alternatives for them are either cash, which loses more, or investments that are higher risk and more volatile.
- chgs 2y ago
  Because they lose more if they just stick it in a box under the bed.