Sephiroth
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Inflation isn't just about the persistent increase of goods and services, with a closer look, you'll realize it's more than then. Below, you'll get to know why it is a form of wealth transfer from the poor to the rich. The poor often spend their income on essentials that is subject or vulnerable to inflation; rent, food and even transportation, so they become direct victim of the persistent increase in prices. Looking further most poor people are income earners, and small business owners relying hugely on wages and salaries, so when inflation hits hard their income drastically takes a hit. On the flip side, the rich hold assets; stock and even real estates, they convert their cash to assets and these assets value is not affected by inflationary trends. While the poor hold cash operating from paycheck to paycheck. So while their purchasing power takes a hit, the rich can see their wealth grow. The rich can adapt to inflation by just cutting down luxury spending, but the poor can't adjust, because they have to spend on essentials. In conclusion inflation quietly moves purchasing power away from people who hold cash, to people who hold assets. While the poor hold cash, inflation hits and the value of their purchasing power reduce, but the rich hold assets like real estate, stocks and businesses, when inflation hits, the value of their asset increases.
Inflation isn't just about the persistent increase of goods and services, with a closer look, you'll realize it's more than then. Below, you'll get to know why it is a form of wealth transfer from the poor to the rich. The poor often spend their income on essentials that is subject or vulnerable to inflation; rent, food and even transportation, so they become direct victim of the persistent increase in prices. Looking further most poor people are income earners, and small business owners relying hugely on wages and salaries, so when inflation hits hard their income drastically takes a hit. On the flip side, the rich hold assets; stock and even real estates, they convert their cash to assets and these assets value is not affected by inflationary trends. While the poor hold cash operating from paycheck to paycheck. So while their purchasing power takes a hit, the rich can see their wealth grow. The rich can adapt to inflation by just cutting down luxury spending, but the poor can't adjust, because they have to spend on essentials. In conclusion inflation quietly moves purchasing power away from people who hold cash, to people who hold assets. While the poor hold cash, inflation hits and the value of their purchasing power reduce, but the rich hold assets like real estate, stocks and businesses, when inflation hits, the value of their asset increases.
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thalyaBlackCoven
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Inflation isn't just about the persistent increase of goods and services, with a closer look, you'll realize it's more than then. Below, you'll get to know why it is a form of wealth transfer from the poor to the rich. The poor often spend their income on essentials that is subject or vulnerable to inflation; rent, food and even transportation, so they become direct victim of the persistent increase in prices. Looking further most poor people are income earners, and small business owners relying hugely on wages and salaries, so when inflation hits hard their income drastically takes a hit. On the flip side, the rich hold assets; stock and even real estates, they convert their cash to assets and these assets value is not affected by inflationary trends. While the poor hold cash operating from paycheck to paycheck. So while their purchasing power takes a hit, the rich can see their wealth grow. The rich can adapt to inflation by just cutting down luxury spending, but the poor can't adjust, because they have to spend on essentials. In conclusion inflation quietly moves purchasing power away from people who hold cash, to people who hold assets. While the poor hold cash, inflation hits and the value of their purchasing power reduce, but the rich hold assets like real estate, stocks and businesses, when inflation hits, the value of their asset increases.
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Y_iPinkman
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Inflation isn't just about the persistent increase of goods and services, with a closer look, you'll realize it's more than then. Below, you'll get to know why it is a form of wealth transfer from the poor to the rich. The poor often spend their income on essentials that is subject or vulnerable to inflation; rent, food and even transportation, so they become direct victim of the persistent increase in prices. Looking further most poor people are income earners, and small business owners relying hugely on wages and salaries, so when inflation hits hard their income drastically takes a hit. On the flip side, the rich hold assets; stock and even real estates, they convert their cash to assets and these assets value is not affected by inflationary trends. While the poor hold cash operating from paycheck to paycheck. So while their purchasing power takes a hit, the rich can see their wealth grow. The rich can adapt to inflation by just cutting down luxury spending, but the poor can't adjust, because they have to spend on essentials. In conclusion inflation quietly moves purchasing power away from people who hold cash, to people who hold assets. While the poor hold cash, inflation hits and the value of their purchasing power reduce, but the rich hold assets like real estate, stocks and businesses, when inflation hits, the value of their asset increases.
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