4 ms·

>Which means that people who cannot bury their wealth in (non-treasury!) assets will pay off the debt. I.e. people who need to work, which means it disproporti

>Which means that people who cannot bury their wealth in (non-treasury!) assets will pay off the debt. I.e. people who need to work, which means it disproportionately affects the young. This is what has to happen in a democratic society with a flattened and eventual top heavy population pyramid that will not vote to reduce old people benefits.

hdgvhicv 1y ago
Workers will see higher wages as there is more work and fewer people to do the work Everyone will see higher prices as the costs of work increase Interest rates will be low as there’s no other option
- toomuchtodo 1y ago
  Indeed, demographics are destiny. https://www.suerf.org/wp-content/uploads/2023/12/f_fa99ccdbea597263a88f27075bd6eb49_17385_suerf.pdf https://www.suerf.org/wp-content/uploads/2023/12/f_fa99ccdbe... https://link.springer.com/book/10.1007/978-3-030-42657-6 https://link.springer.com/book/10.1007/978-3-030-42657-6
- lotsofpulp 1y ago
  The relative rate of change is important, not the absolute change. Politically, asset prices will be inflated quicker than labor prices. You can use SP500 as an easy guage. This is not sustainable forever, of course, but I would bet there are a few more decades it will work.
  - hdgvhicv 1y ago
    Over the last 40 years the S&P has consistently increased around 7% a year more than wages regardless of “money printing” or interest rates
    - lotsofpulp 1y ago
      It’s not regardless of government intervention. There have been numerous bailouts and interest rates deductions specifically to backstop SP500. It is a stealth tax that targets the young (or those too poor to be beneficiaries), because leaders need to maintain purchasing power for their voters’ benefits (the vast majority going to the old) and the solvency of taxpayer funded defined benefit pensions.
- betaby 1y ago
  > Workers will see higher wages as there is more work and fewer people to do the work Canada effectively has removed immigration cap. So no, not going to happen.
AnthonyMouse 1y ago
> I.e. people who need to work, which means it disproportionately affects the young. In general currency devaluation causes nominal wages to increase along with the price of everything else. The people who get screwed are creditors, especially creditors who issued debt at a fixed interest rate. Which is kind of not that bad, except that creditors tend to have a lot of political power and then use it to either get bailed out by the taxpayer or get policies put in place to prevent inflation from eroding existing debts even if those policies have harsh consequences for other people.

hdgvhicv 1y ago

Workers will see higher wages as there is more work and fewer people to do the work Everyone will see higher prices as the costs of work increase Interest rates will be low as there’s no other option

toomuchtodo 1y ago
Indeed, demographics are destiny. https://www.suerf.org/wp-content/uploads/2023/12/f_fa99ccdbea597263a88f27075bd6eb49_17385_suerf.pdf https://www.suerf.org/wp-content/uploads/2023/12/f_fa99ccdbe... https://link.springer.com/book/10.1007/978-3-030-42657-6 https://link.springer.com/book/10.1007/978-3-030-42657-6
lotsofpulp 1y ago
The relative rate of change is important, not the absolute change. Politically, asset prices will be inflated quicker than labor prices. You can use SP500 as an easy guage. This is not sustainable forever, of course, but I would bet there are a few more decades it will work.
- hdgvhicv 1y ago
  Over the last 40 years the S&P has consistently increased around 7% a year more than wages regardless of “money printing” or interest rates
  - lotsofpulp 1y ago
    It’s not regardless of government intervention. There have been numerous bailouts and interest rates deductions specifically to backstop SP500. It is a stealth tax that targets the young (or those too poor to be beneficiaries), because leaders need to maintain purchasing power for their voters’ benefits (the vast majority going to the old) and the solvency of taxpayer funded defined benefit pensions.
betaby 1y ago
> Workers will see higher wages as there is more work and fewer people to do the work Canada effectively has removed immigration cap. So no, not going to happen.

AnthonyMouse 1y ago

> I.e. people who need to work, which means it disproportionately affects the young. In general currency devaluation causes nominal wages to increase along with the price of everything else. The people who get screwed are creditors, especially creditors who issued debt at a fixed interest rate. Which is kind of not that bad, except that creditors tend to have a lot of political power and then use it to either get bailed out by the taxpayer or get policies put in place to prevent inflation from eroding existing debts even if those policies have harsh consequences for other people.