alt.politics.economics

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You are nuts. The word is "devaluation" and is a synonym for
"inflation." If you obtained a mortgage on a home in 1999 it would seem
that the devaluation of the dollar would be an advantage but your 1999
wage has actually been decreased by 40% whereas the mortgage has
remained constant. So, you are now subject to a 40% increase in your
monthly payments on your 1999 mortgage.

Econotron wrote:
> "The Trucker" wrote in message
> news: @ ...
>
>> On Sat, 15 Sep 2007 15:19:14 +0000, hal wrote:
>>
>>
>>> predictions, anyone?
>>>
>> Inflation hurts people who have money. It don't hurt people who work for
>> a living.
>>
>>
> [snip]
>
> Could not disagree more! Precisely, inflation benefits borrowers and hurts
> savers, however people with money borrow too and they have greater means to
> protect themselves against risk than those living from paycheck to paycheck.
> But the most important indicator on a macro level is how the new money are
> distributed. And, as you may guess, they are distributed unevenly, with the
> higher income getting bigger share. It is one of the main reasons of growing
> disparity in the US, as well as in many other countries. Eventually the poor
> guy loses anyway - he may pay off his debts with cheaper money, but will
> spend more on gas and will have a lousy job, if any. Another ugly side of
> inflation is a greater shift of economic activity towards its less
> productive sectors, such as lending and money management. In short,
> inflation is evil, both morally and economically.
> e.
>
>
>

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You are nuts.  The word is "devaluation" and is a synonym for
"inflation." If you obtained a mortgage on a home in 1999 it would seem
that the devaluation of the dollar would be an advantage but your 1999
wage has actually been decreased by 40% whereas the mortgage has
remained constant. So, you are now subject to a 40% increase in your
monthly payments on your 1999 mortgage.



Econotron wrote:

"The Trucker" <mikcob@ > wrote in message 

news: @ ...

  

On Sat, 15 Sep 2007 15:19:14 +0000, hal wrote:



    

predictions, anyone?

      

Inflation hurts people who have money.  It don't hurt people who work for

a living.



    

[snip]

  

Could not disagree more! Precisely, inflation benefits borrowers and hurts 

savers, however people with money borrow too and they have greater means to 

protect themselves against risk than those living from paycheck to paycheck. 

But the most important indicator on a macro level is how the new money are 

distributed. And, as you may guess, they are distributed unevenly, with the 

higher income getting bigger share. It is one of the main reasons of growing 

disparity in the US, as well as in many other countries. Eventually the poor 

guy  loses anyway - he may pay off his debts with cheaper money, but will 

spend more on gas and will have a lousy job, if any. Another ugly side of 

inflation is a greater shift of economic activity towards its less 

productive sectors, such as lending and money management. In short, 

inflation is evil, both morally and economically.

e. 





  

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