Economy Do Working Class Benefit from Inflation/Hyperinflation?

[Bballfan123]

Should people with no real assets want inflation?

This is not a nice thiuyghts thread this is spit balling and cold logic thread

If someone has no assets, and is working class, doesn't inflation or hyper inflation benefit them so long as they remain gainfully employed?

Canada as an example

in vancouver a house costs like $1.1 million. Regular working People make lets say $25-30 an hour. Realistically, these people will never be able to own a home even if they work hard for 30 straight years. They wont qualify. Ever. Even with $50k saved up over years. Someone with deep pockets and $500k-$1 mil will come in and buy it. (They have 10X as much money If you're working poor you are basically going to work forever and never own a home unless you save every possible penny for 40 straight years never go out to eat never enjoy your life and everything possible goes right. You never get hurt never get sick never get fired. On areas with expensive real estate.

If hyperinflation were to occur and they start making $2000/hr the field would be (somewhat) leveled. They could make $1 mil a year. If this formerly working poor person compares their bank acct vs someone who made $2 mil a year in the hyper inflated economy it would be $1,050,000 vs $3,000,000 (3X as much money) Which would be worth the same amount of actual value but would be more level playing field.

Do the working poor perversely be efit along with the super rich from inflation by lowering the middle class to their level? Or do only super rich people benefit cause they can just buy up all the shit?

I think working poor benefit in some perverse way by having the moddle and lower middle class lose their savings. Idk. I don't care too much about economics just thinking. I think subconsciously this IS true and that's why so many people want the economy to collapse because there's nowhere to go but up if youre at the bottom

 

[TheMoa]

I dont think you know what hyperinflation is.
From minimum wage up to middle class, you get your wages and you run to the supermarket to buy in bulk and stock stuff. While you're there buying the price may be changed multiple times. Every hour you have cash in your hands you're losing money.
The government usually ties the salary to some price index related to the inflation, but it cant keep up. By the time you get your new wage (end of the week/month) you're already behind.
It's common for people to trade service/goods instead of relying on the currency.
People who does have money convert it in different assets (real state, cars, machinery, gold, foreign money).

In any economic crisis poor people will always suffer the most, is not a matter of relative money lost, it's a matter of being able to feed the family at end of the day.

 

[chardog]

For international travel it is a benefit, paying off the deficit would be easier, the problem is that if it’s too fast wages cant keep up

 

[MeatheadMike]

For people with no assets the answer is no.

Inflation rises faster than wages which may never end up fully catching up with it.

People with fixed rate loans or mortgageed assets might benefit from inflation in the long run as their debt will decrease in real terms while their payments stay the same.

 

[Romulas]

Nowadays inflation is created by the gov in order to pay off debt with dollars that are worth less.

Hyperinflation is bad for 99% of people 99% of the time.

 

[koa pomaikai]

Nowadays inflation is created by the gov in order to pay off debt with dollars that are worth less.

Hyperinflation is bad for 99% of people 99% of the time.

Just own a bunch of products instead of government currency.

 

[lowlife]

jfc. here you go OP.

ChatGPT - Hyperinflation and Working Class

Shared via ChatGPT

chatgpt.com

 

[Rob Battisti]

Should people with no real assets want inflation?

This is not a nice thiuyghts thread this is spit balling and cold logic thread

If someone has no assets, and is working class, doesn't inflation or hyper inflation benefit them so long as they remain gainfully employed?

Canada as an example

in vancouver a house costs like $1.1 million. Regular working People make lets say $25-30 an hour. Realistically, these people will never be able to own a home even if they work hard for 30 straight years. They wont qualify. Ever. Even with $50k saved up over years. Someone with deep pockets and $500k-$1 mil will come in and buy it. (They have 10X as much money If you're working poor you are basically going to work forever and never own a home unless you save every possible penny for 40 straight years never go out to eat never enjoy your life and everything possible goes right. You never get hurt never get sick never get fired. On areas with expensive real estate.

If hyperinflation were to occur and they start making $2000/hr the field would be (somewhat) leveled. They could make $1 mil a year. If this formerly working poor person compares their bank acct vs someone who made $2 mil a year in the hyper inflated economy it would be $1,050,000 vs $3,000,000 (3X as much money) Which would be worth the same amount of actual value but would be more level playing field.

Do the working poor perversely be efit along with the super rich from inflation by lowering the middle class to their level? Or do only super rich people benefit cause they can just buy up all the shit?

I think working poor benefit in some perverse way by having the moddle and lower middle class lose their savings. Idk. I don't care too much about economics just thinking. I think subconsciously this IS true and that's why so many people want the economy to collapse because there's nowhere to go but up if youre at the bottom

Wtf

 

[KAZSoliloquy]

yes. if everything costs more they'll just work much harder. a 70 hour work week builds character.

 

[KAZSoliloquy]

Inflation rises faster than wages which may never end up fully catching up with it.

i wonder why that is.

 

[rearnakedchoke]

Trickle up poverty.

 

[Deleted member 110072]

Nowadays inflation is created by the gov in order to pay off debt with dollars that are worth less.

The key really ends up being who benefits from that debt? after 2008 that extra debt creation basically went right into the pockets of the wealthy and big banks, very little of it filtered down so most people have been worse off.

 

[jeremyemilio]

Should people with no real assets want inflation?

This is not a nice thiuyghts thread this is spit balling and cold logic thread

If someone has no assets, and is working class, doesn't inflation or hyper inflation benefit them so long as they remain gainfully employed?

Canada as an example

in vancouver a house costs like $1.1 million. Regular working People make lets say $25-30 an hour. Realistically, these people will never be able to own a home even if they work hard for 30 straight years. They wont qualify. Ever. Even with $50k saved up over years. Someone with deep pockets and $500k-$1 mil will come in and buy it. (They have 10X as much money If you're working poor you are basically going to work forever and never own a home unless you save every possible penny for 40 straight years never go out to eat never enjoy your life and everything possible goes right. You never get hurt never get sick never get fired. On areas with expensive real estate.

If hyperinflation were to occur and they start making $2000/hr the field would be (somewhat) leveled. They could make $1 mil a year. If this formerly working poor person compares their bank acct vs someone who made $2 mil a year in the hyper inflated economy it would be $1,050,000 vs $3,000,000 (3X as much money) Which would be worth the same amount of actual value but would be more level playing field.

Do the working poor perversely be efit along with the super rich from inflation by lowering the middle class to their level? Or do only super rich people benefit cause they can just buy up all the shit?

I think working poor benefit in some perverse way by having the moddle and lower middle class lose their savings. Idk. I don't care too much about economics just thinking. I think subconsciously this IS true and that's why so many people want the economy to collapse because there's nowhere to go but up if youre at the bottom

No. Not the working class,, at least, because prices rise before (and often faster than) wages, so the working class gest further and further behind. (Specific sectors or trades that are able to leverage their skills and provide in demand goods and services at a newly elevated price can certainly benefit, as we're seeing with anyone currently employed in construction.)

However, if you are in debt, and especially if you are heavily in debt but that debt is connected to assets of actual value (real estate, in particular), then you benefit a whole bunch from high inflation... at least in theory. Problem is, interest rates claw a lot of those gains back.

Now, mind you, sometime inflation comes later as an end result of wage increases rooted in some other factor (government mandated increases in the minimum wage, for instance). In those cases, yes, the working class (specifically, whomever received the wage increase that kicked off the inflation) do benefit temporarily as they get the wage hikes before the price hikes and do better until the price hikes catch up.

 

[Bballfan123]

No. Not the working class,, at least, because prices rise before (and often faster than) wages, so the working class gest further and further behind. (Specific sectors or trades that are able to leverage their skills and provide in demand goods and services at a newly elevated price can certainly benefit, as we're seeing with anyone currently employed in construction.)

However, if you are in debt, and especially if you are heavily in debt but that debt is connected to assets of actual value (real estate, in particular), then you benefit a whole bunch from high inflation... at least in theory. Problem is, interest rates claw a lot of those gains back.

Now, mind you, sometime inflation comes later as an end result of wage increases rooted in some other factor (government mandated increases in the minimum wage, for instance). In those cases, yes, the working class (specifically, whomever received the wage increase that kicked off the inflation) do benefit temporarily as they get the wage hikes before the price hikes and do better until the price hikes catch up.

That’s true I remember reading abt Zimbabwe they were so bad they had to get paid twice a day because their paycheck became worthless after two days… guess poor ppl stay poor and never get up

 

[KAZSoliloquy]

The key really ends up being who benefits from that debt? after 2008 that extra debt creation basically went right into the pockets of the wealthy and big banks, very little of it filtered down so most people have been worse off.

no way!