My friend is arguing that inflation is good for poor people because they are probably racking up debt to stay solvent. How would you debate this?
poor people are more than likely not close to "the money printer." even if old debts are devalued due to inflation, current and new debts will cost the same or more in proportion. if "being poor" means they are living paycheck to paycheck, then they at best don't move. at worst, inflation outpaces their yearly standard of living raise and they end up worse than where they were.
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Inflation does benefit debtors. Your best argument: Nobody lends money to poor people with shitty credit.
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Poorer people are hit harder by inflation as the proportion of their income is going on rising price goods (fuel, food etc) relative to wealthier (and asset rich) individuals.
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