>A sad thought I have about inflation is the fact that it is, wittingly or not, a weapon wielded by the rich against the middle and lower classes.
I’m sure the Roman plebeians also thought as much during drought induced famine; “the wealthy caused shortages by their greed”
Seems to be the natural response of the hyper-social-aware-confabulatory-ape-mind we, as humans possess.
But make no mistake, inflation is caused by a mismatch between societies expectation of productive capacity, and its real productive capacity.
Right now, real asset values are going down. Yes, some businesses have maintained nominal increases, but as consumers feel the squeeze so will asset real values. Asset valuation is based on real returns, and consumer behavior drives real returns.
I’m sure the Roman plebeians also thought as much during drought induced famine; “the wealthy caused shortages by their greed”
Seems to be the natural response of the hyper-social-aware-confabulatory-ape-mind we, as humans possess.
But make no mistake, inflation is caused by a mismatch between societies expectation of productive capacity, and its real productive capacity.
Right now, real asset values are going down. Yes, some businesses have maintained nominal increases, but as consumers feel the squeeze so will asset real values. Asset valuation is based on real returns, and consumer behavior drives real returns.