Can We Survive the Next Financial Crisis?

Re:Can We Survive the Next Financial Crisis? by AnimalMuppet on Monday September 10, 2018 @08:42PM (#17956320)

All true. But I fail to see how your point about raises happening after price increases refutes the point that inflation destroys (reduces) the value of debt.

Now, true, if you're a worker who owes money, and inflation kills your cash flow (because raises come later than price increases), it may not matter to you that the value of your debt decreased, because the cash flow problem is going to bankrupt you before the debt erosion helps you. But it's still a separate effect.

[ Parent | on HN ]

Re:Can We Survive the Next Financial Crisis? by nonbel on Tuesday September 11, 2018 @02:52AM (#17957654)

I just don't think the fact that there is debt erosion has much impact on the gap between rich and poor. I'm talking about an income that ten years ago would get you a full one bedroom apartment now gets you living in a converted closet. Meanwhile the pay for the same work has gone from 12 $/hr to 15 $/hr.

Also, this is ignoring that anyone sane issuing debt plans for inflation and accounts for this somehow (interest rate schedule, etc)...

Edit:

Another thing, this "inflation helps the poor idea" seems to be a version of trickle down economics.

[ Parent | on HN ]