(09-20-2024, 05:50 AM)The Real Marty Wrote:

(09-19-2024, 08:51 PM)Jag149 Wrote: Well in this case I can agree you are half correct.  People with savings have less buying power due to inflation and would not like it.

Your take on people with debt is a bit incorrect. The debt is unchanged, it stays the same. Your salary is unchanged so there is no effect, on the debt, but living costs rise giving a person fewer dollars to pay the loan back. People would not like this either. It can even get worse as unless you have a fixed rate loan rates go up and payments grow.  That is the downside risk of variable rate loans.

In theory, he's correct about debt.  Inflation benefits debtors, because they pay back their debts with money that is worth less than it was when they borrowed it.  Whether inflation benefits a person in totality is a different question.  But just in terms of the money you borrowed and the money you pay it back with, inflation is a benefit.