This notion that inflation is good for poor people is fairly prevalent and ridiculous. For starters, many of the 35% of the country who don't own a home have probably been priced out for a very long time.
Right. And the notion that DEflation is some terrible thing to be avoided at all costs is still alive and well. I for one would love it if food went down by 50%, machinery by 25%, housing by 40% etc.
Indeed. For some masochistic reason I was arguing with a guy on quora who insisted - without giving any examples - that DEflation is much worse than inflation. When I asked him how, his only response was that deflation means no demand. He finally got all butthurt and had a little online meltdown.
I think the idea that inflation is good for the poor is based on the idea that inflation erodes the real value of debt. But the poor are less likely to own homes and benefit from fixed rate mortgages at low interest rates and more likely to have credit card balances that are sky high and have variable rates. The poor get totally hosed when food, energy and housing goes up. So it is baffling to think inflation helps the poor.
Bloomberg - "Inflation is a lesson in appreciating what you had instead of just complaining about losing it." (C) Central Wankers, Rothschilds and Rockefellers
I saw a video on TikTok the other day with a woman crying after filling up her car. Sobbing she said, I'm not going to be able to eat today. Yea inflation is great for poor people.
This notion that inflation is good for poor people is fairly prevalent and ridiculous. For starters, many of the 35% of the country who don't own a home have probably been priced out for a very long time.
Right. And the notion that DEflation is some terrible thing to be avoided at all costs is still alive and well. I for one would love it if food went down by 50%, machinery by 25%, housing by 40% etc.
But property taxes would go down.
As I like to say, deflation is an untaxed increase in your purchasing power. They cannot allow that!
Indeed. For some masochistic reason I was arguing with a guy on quora who insisted - without giving any examples - that DEflation is much worse than inflation. When I asked him how, his only response was that deflation means no demand. He finally got all butthurt and had a little online meltdown.
I think I've met that guy a few times.
I think the idea that inflation is good for the poor is based on the idea that inflation erodes the real value of debt. But the poor are less likely to own homes and benefit from fixed rate mortgages at low interest rates and more likely to have credit card balances that are sky high and have variable rates. The poor get totally hosed when food, energy and housing goes up. So it is baffling to think inflation helps the poor.
https://web.archive.org/web/20220510184327/https://twitter.com/RudyHavenstein/status/1367484046956064768
Bloomberg - "Inflation is a lesson in appreciating what you had instead of just complaining about losing it." (C) Central Wankers, Rothschilds and Rockefellers
https://twitter.com/opinion/status/1539803659302830082
https://web.archive.org/web/20220327005506/https://twitter.com/RudyHavenstein/status/1185768223129518081
Exactly!
I saw a video on TikTok the other day with a woman crying after filling up her car. Sobbing she said, I'm not going to be able to eat today. Yea inflation is great for poor people.
Wen sound money?
Statists don't like sound money.