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   Tokyo Outsider (337ppm) (tokyo_0@mas.to)'s status on Monday, 24-Jun-2024 06:12:12 JST Tokyo Outsider (337ppm)

   Why is 2% inflation supposed to be a good thing, anyway?

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     Joe Cooper 💾 (swelljoe@mas.to)'s status on Monday, 24-Jun-2024 06:22:10 JST Joe Cooper 💾

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     @tokyo_0 you reckon it's too high or too low? Some inflation is probably good for working class folks, as long as wages keep pace with it (which isn't a given, see the current US minimum wage that hasn't changed in 15 years), as it devalues assets of rich folks and working class folks assets, like a house with a mortgage, act as a hedge (cost of housing stays the same, while wages go up). But, too much inflation is an economic shock and wages tend to lag way behind, hurting workers.

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     Tokyo Outsider (337ppm) (tokyo_0@mas.to)'s status on Monday, 24-Jun-2024 06:29:36 JST Tokyo Outsider (337ppm)

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     • Joe Cooper 💾

     @swelljoe Interesting! That does make sense. Folks with mortgages will just end up paying more interest, I'd have thought, but maybe not enough more that it outweighs the other benefits? 🤔

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     Joe Cooper 💾 (swelljoe@mas.to)'s status on Monday, 24-Jun-2024 06:29:37 JST Joe Cooper 💾

     in reply to

     @tokyo_0 but, all that assumes good intentions on the part of policymakers and regulators, which is hard to assume these days. These days, capital is being protected from inflation and unregulated cartels are price-fixing, while workers aren't often getting higher wages to keep pace with it. So, lower is probably better for everyone? I dunno.

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     Joe Cooper 💾 (swelljoe@mas.to)'s status on Monday, 24-Jun-2024 06:32:07 JST Joe Cooper 💾

     in reply to

     @tokyo_0 a fixed-rate mortgage (which is what most folks choose, after a bunch of fuckery from lenders over the past couple-few decades with variable rate mortgages cost people their homes), so their payments never change for the life of the mortgage. They probably pay higher property taxes over time, and maybe higher insurance premiums, as those are subject to inflation and rising home values, but most of their housing cost is fixed.