3 ms·
> Inflation is a redistribution scheme of the poor to the > rich and from savings to spenders. Technically, from those with monetary savings to those with no
by jmillikin 13y ago
> Inflation is a redistribution scheme of the poor to the
> rich and from savings to spenders.
Technically, from those with monetary savings to those with non-monetary savings. Inflation will strike someone with $1,000,000 in the bank much harder than someone with a stash of precious metal, large property holdings, or industrial equipment. The hardest hit are individuals who have accumulated wealth but are not skilled enough at managing it (e.g. retirees living on an immediate annuity). Inflation doesn't have much effect on the poor, because income tends to increase along with the cost of consumer goods.
- jswinghammer 13y agoIncome does not rise with the cost of consumer goods. Why is it that people feel so much poorer now than they did 30 years ago? The reason that inflation is a transfer of wealth from the poor to the rich is that the poor do have small savings and that gets robbed from them as the newly inflated money makes it way through the bank accounts of those with influence first and don't ever the poor in any positive way.
- rayiner 13y agoPeople feel poorer now than 30 years ago because of rising income inequality. People's viewpoints are relative, like all human thinking. By nearly any measure, people's ability to afford consumption is higher now than it was 30 years ago.