Yes, printing money and inflation is good for the ruling class.
It’s how they convince people everything is fine while taking them for a ride. Raising taxes on the wealthy impacts their wealth. Printing money impacts the wealth of the working class.
Once it’s too late, they leave the country with their wealth and we have to deal with the aftermath.
Inflation directly erodes wealth, so the wealthy hate it more than most people. If you had a million dollars in the bank, would you rather be able to buy 300,000 gallons of gasoline or 200,000 gallons?
Inflation also makes businesses less efficient and reduces profits, so investors hate it more than noninvestors.
However, fighting inflation often causes unemployment, so working people are generally more resistant to inflation than those who don’t work (particularly if inflation is accompanied by wage increases). During the last round of inflation, the Fed literally said they wanted to increase unemployment.
Federal Reserve Chairman Jerome Powell said Wednesday it will be almost impossible for the central bank to beat inflation without hundreds of thousands of Americans losing their jobs… The Fed’s projections show that it is willing to accept over a million more unemployed over the next few years.
When inflation goes unchecked, as it has in many other countries, wages go up at the same rate as prices. Unchecked inflation means everything goes up at once. Even here, wages have been going up.
You are confusing the cure and disease. If wages increase more slowly than inflation, it’s because there are policies aimed at keeping them down. Those policies are an attempt to control inflation throughout the economy.
Finally, inflation doesn’t “let” anyone raise prices, it’s a measure of how much they have already raised prices. And it doesn’t “recoup” anything, because investors care about inflation-adjusted gains not nominal gains.
Yes, printing money and inflation is good for the ruling class.
It’s how they convince people everything is fine while taking them for a ride. Raising taxes on the wealthy impacts their wealth. Printing money impacts the wealth of the working class.
Once it’s too late, they leave the country with their wealth and we have to deal with the aftermath.
Inflation directly erodes wealth, so the wealthy hate it more than most people. If you had a million dollars in the bank, would you rather be able to buy 300,000 gallons of gasoline or 200,000 gallons?
Inflation also makes businesses less efficient and reduces profits, so investors hate it more than noninvestors.
However, fighting inflation often causes unemployment, so working people are generally more resistant to inflation than those who don’t work (particularly if inflation is accompanied by wage increases). During the last round of inflation, the Fed literally said they wanted to increase unemployment.
Wrong. The wealthy like inflation because they get to raise prices to outpace wages.
It’s how they recoup any gains the working class has made, with interest.
When inflation goes unchecked, as it has in many other countries, wages go up at the same rate as prices. Unchecked inflation means everything goes up at once. Even here, wages have been going up.
You are confusing the cure and disease. If wages increase more slowly than inflation, it’s because there are policies aimed at keeping them down. Those policies are an attempt to control inflation throughout the economy.
Finally, inflation doesn’t “let” anyone raise prices, it’s a measure of how much they have already raised prices. And it doesn’t “recoup” anything, because investors care about inflation-adjusted gains not nominal gains.