On the topic of whether inflation hits the poor harder than the rich, I have been undecided/inconclusive in my mind about this. And would love some perspectives on it, along the lines of:
Although day to day items that dominate the spending of a lower income person's paycheck are easily seen affected when inflation hits, for a wealthy person, whatever savings and money is accumulated eventually has to be spent on such things also -- whether directly by the owner, or through goods/services that have to pay such expenses.
So in time, in having to spend their wealth, the rich get affected by shrinking buying power as well. (they just have the luxury to spend on more items that are not daily/monthly subsistence expenses)
Is that reasonable to think?
Why am I getting downvoted for such a legitimate economic question? Is this offensive against lower income people?
Inflation hits everybody, but it hits people with bad market timing a lot more than people with good market timing. That means the dumb rich are the biggest losers, the smart rich are the biggest winners, and the poor (who don't have the luxury of choosing how to time the market on most things) also generally lose.
Although day to day items that dominate the spending of a lower income person's paycheck are easily seen affected when inflation hits, for a wealthy person, whatever savings and money is accumulated eventually has to be spent on such things also -- whether directly by the owner, or through goods/services that have to pay such expenses.
So in time, in having to spend their wealth, the rich get affected by shrinking buying power as well. (they just have the luxury to spend on more items that are not daily/monthly subsistence expenses)
Is that reasonable to think?
Why am I getting downvoted for such a legitimate economic question? Is this offensive against lower income people?