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by whimsicalism
785 days ago
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> Data? Sure [0]. You can also look at historical US rebellions, such as Shays' rebellion - where a principle demand of the working class rebels was that the US government print more money. > Inflation is absolutely a way to steal the already meager savings of the working class. Exactly why inflation is generally beneficial to the working class, generally their savings are insignificant while their wages are very important - it raises their wages while reducing the value of savings & debt, which hurts people who have lots of savings and helps people who are living off of their wages. [0]: https://realtimeinequality.org/?id=wealth&wealthend=03012023... |
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https://www.nber.org/system/files/working_papers/w31775/w317...
There is an overwhelming amount of data pointing in the opposite direction.
This is easier to answer through simple logic though. Do you think the ruling / wealthy class would allow inflation if it hurt them? Perhaps, but personally I find it a bit naive.
Let's break down your claim though
> Exactly why inflation is generally beneficial to the working class, generally their savings are insignificant while their wages are very important - it raises their wages while reducing the value of savings & debt, which hurts people who have lots of savings and helps people who are living off of their wages.
Reducing the value of debt is a real possible winner, but that helps the rich just as much. And the poor person's debt, believe it not, tends to be of high enough interest that inflation isn't going to help them as much as you claim. Especially since they are subject to variable interest rates more than most.
Savings? Once again, this is cash for them, and for the wealthy it tends to be assets that are not harmed by inflation (either by growing with them or outpacing it).
So let's get to the final claim. It raises their wages. Is that true? The wage is inflated, but their purchasing power doesn't actually improve. It tends to go down, as the things they spend their money on are, you guessed it, inflated.
It's wild to think that inflation is helping folks at the bottom.