| even during times of inflation, real prices don't necessarily rise on everything. Some responders have talked about inflation impacting the poor more, but I think they mean in terms of human suffering or distress. From a numbers standpoint, inflation is a rate and so its proportional to the amount of something that is purchased. We just don't tend to worry about people who's next mercedes costs them more, so much as we worry about people who have to pay more for a bus pass next month.
The people who lose the most money in inflationary times are those who hold assetts that have a fixed return, like a bond or a CD. People who owe money on a fixed interest rate, such as a student loan or a fixed rate home mortgage do better during inflation, because their paychecks tend to go up and the payments on the loans do not. |