> In a true inflation income rises along with prices so wage earners, and firms and indexed pension holders are protected.
This is not a given and far from necessarily perfectly correlated. Wage earners can still be hit.
There are several assumptions you make here, and none of them should be taken for granted.
And, well, people who hold cash (unless you classify those as debt-holders, which, sure, yeah, but that should be pointed out) or happen to invest in the wrong thing are also hurt badly.
This is not a given and far from necessarily perfectly correlated. Wage earners can still be hit.
There are several assumptions you make here, and none of them should be taken for granted.
And, well, people who hold cash (unless you classify those as debt-holders, which, sure, yeah, but that should be pointed out) or happen to invest in the wrong thing are also hurt badly.