[screye]

Speaking of a recession, I hope the recession isn't another massive redistribution of wealth into the hands of an older generation.

Housing has continued shooting up, as those in the 30s find themselves with fewer assets to buy it with. The low interest rates amortize the costs allowing affordability, but the older generation still gets a massive payout. Then when the economy start recovering back up, the older generations find themselves with all of this liquidity to exploit, while the younger generation is stuck paying off mortgages.

Housing is controlled politically, and holds safety, convenience and schooling hostage. It doesn't play the supply-n-demand game. Thus, it gets to stay unaffected by recession as long as default rate stay low. I am not sure what the mechanism for it is, but I do selfishly wish that housing prices and interest rates will back down to normal sometime soon.

[giantg2]

"Speaking of a recession, I hope the recession isn't another massive redistribution of wealth into the hands of an older generation."

It will be. They're the demographic that has the most in their 401ks and the most capital/assets in general.

[yobbo]

> The low interest rates amortize the costs allowing affordability

Negative real interest rates devalues income from work and up-values ownership of assets. Inflation is not in the interest of workers.

> housing prices and interest rates will back down to normal sometime soon.

Mortgage rates needs to rise until the real interest rate is positive - ie interest rate is greater or equal than housing appreciation.

[screye]

Oh yes, I misspoke.

> back down to normal

I agree. By down, I meant going back to being 2-3% higher than inflation and not being literally 'free money' by being behind inflation.

> Inflation is not in the interest of workers.

Agreed. I think my next sentence clarified that, but yes. In isolation, it does look like I am supporting inflation. My bad.

[RickJWagner]

It's anything but a redistribution to favor older generations.

Older generations are living on savings. They don't have upwardly-adjusted salaries. They don't have time to ride equities downward-then-strongly-upward again, they have to spend from the pile they already had.

The strong inflation definitely favors younger generations, who will salary-adjust with it.

[LatteLazy]

The average recession lasts 15months. So if you're planning to die before Christmas 2023 you won't have time as you say. But 95% of boomers will be just fine.

Also, inflation proof incomes (like pensions and social security) and investments with inflation proofing are a much better bet than "my boss has to give me X% to match inflation".

Then there is the housing market, most people's biggest asset. Anyone without a house will get fucked by rising prices. Anyone with a mortgage will struggle as interest rates rise, but only in cashflow terms, they're still making our overall. And old people who own outright will get all the upsides and none of the downsides...

[RickJWagner]

Pensions? Not likely, in the US.

As for Social Security, it was designed to cover (at best) 40% of costs. That leaves your (shrinking) investments to cover the majority. And Social Security is quickly running out of money. (This should be fixed immediately. Before forgiving student debt, or many other things. Social Security is vital!)

Younger workers will get inflation adjusted raises. The older will lose purchasing power. Inflation is absolutely harmful to those on fixed incomes, less so to those on elastic incomes.

But if you're arguing that a $15 minimum wage was harmful in general, I won't disagree. Inflation hurts everyone.