| Cash-flow producing assets become more valuable during inflation. The rich own assets, they financed these assets with debt. Debt becomes less burdensome with inflation, increasing their equity. At the same time, lendors lose with inflation. But who are the predominant lendors now? Life insurance companies, pension funds, mutual funds, household / nonprofits, state and local govts., etc. All of these institutions seem to be an aggregation of middle-class / poorer people vs. elites. If you're Elon Musk you own Telsa. You're main source of liquidity is likely cash from a revolver[1]. During inflation, your debt becomes relatively smaller to your Tesla equity. Your net equity becomes larger. I think this just leads to more inequality, more corporate control, and weaker labor bargaining power. We'll see - hope its ok. [1] form of debt, where Elon is the lendee and is using Tesla stock as the collateral |