| jdironman - 6/1/2024 09:09
So inflation inflates our net worth but does it create a lot more spendable wealth? Or does it buy more than it did before?
There it is and the answer is generally no if inflation is the only reason the asset increased in value. It's why I have no interest in gold. I prefer stocks / farming that benefit from both inflation and earnings. I say it tongue in cheek but 1 acre has bought 1000 noon Pizza Ranch buffets in my area for basically the last 20 years. Could be longer but I didn't have the privilege of a Pizza Ranch. Of course the land produced earnings in the meantime too. Still, if you liquidate today, you get to spend your after tax dollars on a bunch of other inflated stuff.
Edit add: so I get OP's original point about the debt side, but it is how this inflation is being created that is destabilizing. That is why I think few with children will cheerlead for it.
Edited by reformedbanker 6/1/2024 23:07
|
Inflation and recession.
