Inflation

Inflation

by Delaney Koiner -
Number of replies: 2

Is it possible for inflation to equally affect all people?

In reply to Delaney Koiner

Re: Inflation

by Jedidiah Sian -
Short answer, no. Long answer, no because everyone can be affected by inflation but not everyone will be affected equally. Every family has a different level of income, expenses, different monetary habits and such. If a family is more affluent and wealthy, they will have less of a problem with inflation than a family that is in the lower class who will experience inflation to a greater effect. This is just my thoughts/answer, Professor Danny can add anything else if he wishes.
In reply to Jedidiah Sian

Re: Inflation

by Danny Weaver -
Jed is correct. If you do not have assets that inflate (imagine a poor family with no money in the stock market, no gold, not owning a home, etc.) then inflation only hurts the purchasing power of the dollars you have in savings or the dollars you earn each month before you get a raise to keep up with inflation. The wealthy, however, benefit greatly from inflation. If you are a CEO being paid in stock, the stock of any particular company will only increase with inflation. CEOs are a hedge case, but consider, say, a doctor. They are much more likely to have a high enough income to get by with higher prices, and their assets (stocks, gold, home, lake house, etc.) are all increasing in price due to inflation. It truly is a curious case why progressives support policies that lead to inflation when inflation is a very regressive outcome.