Re:U.S. Changes Visa Process for High-Skilled Workers
by NeedMoreTea on Thursday January 31, 2019 @02:43AM
(#19043156)
That was always one of the advantages of a mortgage that was commonly mentioned and promoted. That your monthly payment would be effectively pennies after 20 years. Sustained low inflation meant that never came to pass.
It was also one of the reasons for the Weimar Republic's hyperinflation. They started trying to inflate away some of the Versailles war reparations. Which got out of control, and then some.
Re:U.S. Changes Visa Process for High-Skilled Workers
by throwaway2048 on Thursday January 31, 2019 @03:11AM
(#19043275)
Asset inflation is a part of inflation, unfortunately along with education and healthcare, our inflation indicators do an extremely poor job of measuring it.
So your 200K/year (accounting for inflation) probably buys roughly the same amount in goods and services as your father, but it can't buy real estate, because that has been inflated in an asset bubble.
These asset bubbles (stocks, real estate) are driven by the fact that owners of capital have been able to depress taxation on capital growth, while increasing (in proportion) taxation on income. They have also been able to use the US national debt to let the Fed maintain their asset bubbles.
Not to mention that in your father's day, inflation ate away at debt, much to the chagrin of the debt holders (ie suppliers of capital). Funnily enough, low inflation has meant that lenders do much better than borrowers.