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Inflation makes servicing debt cheaper which incentivizes getting loans to build things. It also leads to those who have little bargaining power to become unde
by __turbobrew__ 3mo ago
Inflation makes servicing debt cheaper which incentivizes getting loans to build things.
It also leads to those who have little bargaining power to become underpaid as they cannot negotiate higher salaries as inflation squeezes them.
- skybrian 3mo agoInflation usually results in the central bank raising interest rates and thereby discouraging new loans for new projects, to try to prevent further inflation. Maybe you could win if you’re leveraged using fixed-rate, long-term loans and you’re also confident that you can sell something at a higher price. But that’s a rather specific financial maneuver.
- __turbobrew__ 3mo agoYou win when you have a fixed rate 30 year mortgage
- skybrian 3mo agoMaybe, if you also get a raise. But there might be better ways to get a raise than hoping it will happen due to inflation.