Inflation
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A random shower thought from me.
If you have a highly indebted portion of the population (e.g., student loans, large mortgages, etc.) - could you get into a political dynamic where a large portion of the population wants inflation?
The biggest counter would obviously be that your dollar doesn't go as far - but wages should rise to some degree, and for some people they are WAY overleveraged relative to how much they make.
So - with household debt at record levels, would inflation be less bad than it has been in the past? Net-net it would still be bad.
Obviously those with any sort of savings take a bath.
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A random shower thought from me.
If you have a highly indebted portion of the population (e.g., student loans, large mortgages, etc.) - could you get into a political dynamic where a large portion of the population wants inflation?
The biggest counter would obviously be that your dollar doesn't go as far - but wages should rise to some degree, and for some people they are WAY overleveraged relative to how much they make.
So - with household debt at record levels, would inflation be less bad than it has been in the past? Net-net it would still be bad.
Obviously those with any sort of savings take a bath.
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At the end of the day, socioeconomic positioning remains the same. The individuals that are overleveraged will likely retain the same habits, just to larger excesses. There's no real gain except to the Federal Government in reducing the seeming impact of deficit spending... Some people would say that's good enough reasoning to do it, except it essentially kills our seniors...
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A random shower thought from me.
If you have a highly indebted portion of the population (e.g., student loans, large mortgages, etc.) - could you get into a political dynamic where a large portion of the population wants inflation?
The biggest counter would obviously be that your dollar doesn't go as far - but wages should rise to some degree, and for some people they are WAY overleveraged relative to how much they make.
So - with household debt at record levels, would inflation be less bad than it has been in the past? Net-net it would still be bad.
Obviously those with any sort of savings take a bath.
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@aqua-letifer said in Inflation:
a large portion of the population wants inflation?
You'd have to get to a place where a significant portion of the population understands what inflation is, and I don't know if we're there.
Ya think? You make a great straight man.
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If you’re on fixed income — you don’t want inflation, you might even want deflation.
If you have a lot of liquid savings but not much else — you want deflation.
If you own substantial assets, you want asset price inflation.
If you have little assets but earn wages, you want wage inflation.In the last few decades, we have seen a lot of asset price inflation (save the blip following the 2007/2008 financial crisis), outstripping wage inflation, muted consumer price inflation (except healthcare and higher education, at least in the USA).
Consumer staples inflation is not bad when accompanied by wage inflation for the working stuff, but nobody wants consumer staples inflation.
