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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 @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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