Re:Ask HN: About Financial Inequity
by jklein11 on Tuesday December 22, 2020 @03:05PM
(#25510545)
Wouldn't inflation help these people? The depreciating assets may lose value less slowly. Sure, high inflation usually means higher interest rates, but that certainly hasn't been the case in the current environment. Also, you will be paying off the debt with the inflated salary.
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Re:Ask HN: About Financial Inequity
by AnimalMuppet on Tuesday December 22, 2020 @04:44PM
(#25511643)
In theory yes, in practice no.
The problem is that, for these people, inflation comes first to their costs, and only second to their wages. Sure they get to pay back their car loan with cheaper money. But they also have to buy groceries, and the groceries went up. Meanwhile, the number of dollars they owe on their car didn't go down. Sometime later their wages will go up, but until then, they're hurting.