Low income spend a higher % of their income - therefore inflation is bad (rent/food/gas costs more).
High income save & invest a higher % of their income - therefore inflation is good (their stocks go up).
This isn't some sort of moral or judgmental statement. It's simple math. The more your income goes up over time, the less of a % is needed to cover the basics of food/shelter/energy.
Hack your brain, if there is inflation people are looking for a store of wealth, over the last 50 years this has manifested primarily in real estate and stocks. Institutions that have access to large amounts of credit or flows from the government, receive money from investors. When the printing starts stocks rally for these reasons, its the cantillion effect, those closest to the money printer get richer.
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Low income spend a higher % of their income - therefore inflation is bad (rent/food/gas costs more).
High income save & invest a higher % of their income - therefore inflation is good (their stocks go up).
This isn't some sort of moral or judgmental statement. It's simple math. The more your income goes up over time, the less of a % is needed to cover the basics of food/shelter/energy.
Not quite. Inflation doesn’t make stocks go up Willy nilly, that’s outright silly.
Hack your brain, if there is inflation people are looking for a store of wealth, over the last 50 years this has manifested primarily in real estate and stocks. Institutions that have access to large amounts of credit or flows from the government, receive money from investors. When the printing starts stocks rally for these reasons, its the cantillion effect, those closest to the money printer get richer.
Greedflation does.