Re:I'm reading the FT and WSJ from 100 years ago each week l...
by toastermoster on Sunday August 08, 2021 @04:53PM
(#28110003)
Wealthy people own assets that keep up with inflation. They may have 10% in cash which doesn’t keep up with inflation but in general most of their holdings either keep up or outperform inflation. Poor people have wages that don’t keep up with inflation unless they start job hopping. The poor are typically more affected by inflation than the rich.
Re:I'm reading the FT and WSJ from 100 years ago each week l...
by toastermoster on Sunday August 08, 2021 @07:00PM
(#28110988)
Those who have borrowed money benefit from inflation though. If you have student loans or a mortgage, high inflation can work to effectively reduce how much you owe if salaries/wages go up with inflation.
Re:I'm reading the FT and WSJ from 100 years ago each week l...
by jbay808 on Sunday August 08, 2021 @09:59PM
(#28111978)
Sometimes yes, sometimes no.
For example, inflation typically triggers interest rate increases. If your debt is fixed rate that's fine, but if it's not, it might get more expensive more quickly than you expected, and your wage increase might not cover it.
Most folks are in mortgage and consumer debt and have little wealth. Higher inflation mostly impacts people with wealth.
Look at what’s happening now. Lower income folks are getting life changing payments of just a few thousand dollars in the US that is causing increase in services costs.