Inflation is bad for lenders (i.e. people keeping deposits in USD). People who work get paid based on their real value which means their pay rises if inflation rises. Of course it maybe difficult to get a raise for your current job but switching jobs will get you a raise that catches up to inflation.
Note that there has been a shift in bargaining power since 1980 that is closing. That gap is not the result of inflation because inflation alone doesn't give employers bargaining power. If anything it increases bargaining power of employees vs the old job because the new job always pays more in nominal terms.
It's also incredibly bad for pensioners, and often there's a lag between cost of living increasing and wages increasing that can be quite painful until things equalize, which sometime never happen.
I don't understand if we can say this inflation isn't just the surge of people who didn't spend a lot on travel/eating out/etc. now splurging on all the things + constraints on goods like cars due to the pandemic causing supply chain issues. It seems to me to me a relatively temporary, same as how the April 2020 market dip didn't really mean anything come April 2021.
Yes, I don't really get why this often gets dropped. I would assume inflation goes down next year if the supply chains get better again.
A lot of the inflation I saw in the pandemic was perishable products where the supply was cut in some way or another. As long as people that want it badly can afford more they'll pay more for it. This is inflation, but it's not clear whether the money supply or the supply chains are the reason. The money supply was high in the preceding years as well, not leading to such high inflation.
The USA was a fine place to live, many people happily gainfully employed, many investment accounts booking gains, labor and capital coexisting in harmony, when inflation was double what it is now.
imtringued|4 years ago
Here is a chart: https://imgur.com/a/eOXF0UO
Note that there has been a shift in bargaining power since 1980 that is closing. That gap is not the result of inflation because inflation alone doesn't give employers bargaining power. If anything it increases bargaining power of employees vs the old job because the new job always pays more in nominal terms.
willhinsa|4 years ago
jfk13|4 years ago
If only that option were realistically available to all, rather than just an entitled few.
KittenInABox|4 years ago
shkkmo|4 years ago
carlmr|4 years ago
A lot of the inflation I saw in the pandemic was perishable products where the supply was cut in some way or another. As long as people that want it badly can afford more they'll pay more for it. This is inflation, but it's not clear whether the money supply or the supply chains are the reason. The money supply was high in the preceding years as well, not leading to such high inflation.
dr-detroit|4 years ago
[deleted]
an_opabinia|4 years ago