Quote:
Originally Posted by ASAP
so what you are saying is that asset owners who already have everything amassed at a fixed cost are doing great? folks entering the market place, starting their career or on a lower income are f'd? RIP to any semblance of any American dream at this point. I am the former... but I can still see how hard it is for people out there... folks are very blind to reality at this point as they sit in their own comforts.
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I didn’t say anything about “doing great”, I just said they’d be less sensitive to inflation if they had fixed costs. On the flip side, if you have fixed income but variable expenses, you will experience financial pain from inflation.
I entered the workforce full time in 1982 - high inflation, high (relative to the 1970s) housing prices, car prices going up quarterly, rising rents, all that. In that era a lot more people had fixed incomes as pensions and SS were not (or were very recently) indexed to inflation. Today is very different, but there are still people better positioned than others.
The point I was making is that everyone and every business has options in how to deal with this - some have more than others to be sure. As a result inflation impacts each of us differently, so the anecdotes we all refer to do not characterize the economy broadly. At the same time, the official measures have the opposite problem - being averages they mischaracterize outliers on both ends of the spectrum.