Inflation ends up being a wealth transfer from the working class to the rich.
Absolutely, and while my use of the word "dodge" might have been sloppy writing, your analysis of it is spot on.
But also, it is almost universally agreed that inflation in the 3-4% range is healthy for an economy, the eventual effect of governments printing money to pay current obligations and/or securities to "prop-up" Wall Street is a much larger rate, like 20%-30% per year
Just read the histories of South American government defaults or look at Greece now for a primer on the eventual endgame for out of control debt.
We think 4% is a good rate of inflation for a recovery ( if a bit low ) but we're unable to maintain even 2%. This is incredibly strongly correlated with wealth inequality.
The...US Government. I do not agree at all 'deflation' works better for the rich. I think you missed the part about being leveraged into assets. That's huge.
>but we're unable to maintain even 2%
Going by CPI? Take a look at the Dow and RE and tell me inflation is less than 2%.
Yes, by CPI. I think the rise in real estate is caused by the deflationary nature of the rest of the economy. The Dow? That's just our standard bellwether now.