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> rich getting richer means poor getting poorer If the rich getting richer drives up inflation then that does indeed mean that the poor get poorer.
by CrossVR 2y ago
> rich getting richer means poor getting poorer
If the rich getting richer drives up inflation then that does indeed mean that the poor get poorer.
- JumpCrisscross 2y ago> If the rich getting richer drives up inflation Big if! (Inflation drives both price levels and wages.)
- CrossVR 2y agoWe're talking about the poor here, not the middle class. A lot of states haven't raised their minimum wage above the federal minimum wage, which hasn't been raised since 2009. Also even if wages go up inflation still reduces the wealth owned by the middle class. Especially given that interest rates on savings hasn't kept pace with inflation for decades. So unless you own a house or a stock portfolio even the middle class gets poorer due to inflation.
- JumpCrisscross 2y agoWe have zero evidence inequality drives inflation.
- CrossVR 2y agoSure that's an if, but the effects of inflation certainly exacerbates that inequality. Thus the rich get richer while the poor get poorer. It's just a question of cause and effect.
- JumpCrisscross 2y ago> It's just a question of cause and effect Yes. That’s a pretty critical question. High inflation drives inequality. (Moderate depends on the savings rate.) We have zero evidence inequality drives inflation.