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A comment on Federal Reserve Now Projects Rate Increases in 2023 as Economy Heals. Parent comment

Re:Federal Reserve Now Projects Rate Increases in 2023 as Ec... by mindslight on Wednesday June 16, 2021 @04:11PM (#27532919)
Poor people don't have standing debts but rather revolving ones, and so their debt scales with inflation. The rich don't have piles of cash, they buy assets instead. Inflation hoses the middle class who wants to save in cash, which is part of why the middle class is vanishing - extreme monetary inflation to counteract the ever-growing deflation inherent to technological progress.
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Re:Federal Reserve Now Projects Rate Increases in 2023 as Ec... by mullingitover on Wednesday June 16, 2021 @04:46PM (#27533274)
> Inflation hoses the middle class who wants to save in cash

Can you point me to some middle class people who are just sitting on a huge pile of cash? I'm a pretty standard middle class person and the vast majority of my net worth is tied up in a 401k, and if it wasn't there it'd be in a house that would be seriously outpacing inflation.

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Re:Federal Reserve Now Projects Rate Increases in 2023 as Ec... by mindslight on Wednesday June 16, 2021 @05:36PM (#27533748)
A house and 401k are both illiquid and thus irrelevant to your economic bargaining power. If you're upper-middle class then sure your liquid funds might be in a brokerage account, but if you're lower-middle it's likely just a savings account where you're working on building an emergency fund.
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Re:Federal Reserve Now Projects Rate Increases in 2023 as Ec... by mullingitover on Wednesday June 16, 2021 @06:19PM (#27534111)
I can get liquidity out of my 401k trivially by borrowing against it. A home equity loan takes a bit more time but it's also simple to do. If you're lower middle class you most likely don't have any money in your savings account at all[1], but you do have debt which gets diluted by inflation.

Also, to your earlier point:

> Poor people don't have standing debts but rather revolving ones, and so their debt scales with inflation.

So at worst that's a wash.

[1] https://abcnews.go.com/US/10-americans-struggle-cover-400-em...

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