Hacker News new | ask | show | jobs
by jerf 1531 days ago
Only if you have a source of post-inflation dollars, such as, your salary having been adjusted for inflation in the meantime, or you've sold inflated commodities recently at a post-inflation price, perhaps a used car that appreciated over the purchase term. If you are stuck with pre-inflation dollars this is no advantage.

You should not simply assume that you have access to more dollars just because inflation is rising. If your prices go up but your income does not, or your income significantly lags (anyone who got a pre-emptive inflation raise let me know, otherwise it always lags), you're paying for today's inflation with dollars from last year.

1 comments

Yeah, the trick on taking out low interest loans is they have to be long term, like a mortgage. Over 30 years, I'm definitely paying it back in post-inflation dollars. In one year? Not really. I'd have to get a raise on, like, the day I took out the loan.