The working poor are generally the biggest beneficiaries of inflation. Their salaries go up, and they don't have any assets that lose value due to inflation.
Non-working poor like pensioners do often get hit hard by inflation.
Non-working poor like pensioners do often get hit hard by inflation.
most ppl in usa have their net worth tied to homes which have outpaced inflation.
Working poor will never ever be able to afford these again dooming them to permanent poverty for generations. So yea they are aren't really benefiting from inflation even if their salaries kept pace with inflation( which hasn't been the case).
I swear the things you read about macroeconomics is all just contradicting each other.
The p/e ratio is a measure of earnings per dollar of capital. If you invert it to the e/p ratio you can directly compare to interest rates. So a 5% interest rate is comparable to a p/e ratio of 20. So when the interest rates goes up, the "natural" p/e ratio for stocks goes down, thus deflating the stock market.
I think the OP was talking about real assets like houses, land, cars, etc. Those don't go down in value
Salaries take months, if not a full year to follow inflation. A salary is always behind the curve and devalued.
Besides, employees frequently fail to secure inflation adjustment to their salaries, especially in blue collar trades, where an individual worker is easier to replace.
Even when salaries are adjusted, it follows an average rate determined (more appropriate to say manipulated) by the same government which created the inflation.
Most likely the rate of inflation for your family's consumption basket is significantly higher than this "official" index.