[o2sd98]

Stingy bosses has got nothing to do with it. Those who control the means of production can set their prices. The poor's only means of rising wages is through force (either government intervention or strike action). Any wage increase they receive is eaten by inflation. If prices started deflating, it is the poor who would immediately benefit and the rich would immediately be worse off. This is why the rich lobby politicians and academics to maintain inflation at any cost. Once prices start deflating, the immediate effect is relief for the poor and credit stress for the rich. The poor have no savings because they are inflated away. Look at the GINI index for the US and Japan during the "lost decades". In deflationary Japan, the index contracted (i.e. wealth disparity declined), in the inflationary US, it increased.

The rich are not borrowing from each other. Banks create money endogenously. They are buying existing assets from each other, and they are also buying new assets as they are created. Without inflation, asset purchases would look less attractive on a cash return basis, so inflation does serve that purpose. However, persistent inflation is forcing the market to be investors when they may want to save or spend.