Anyone who is on a long term contract where they owe fixed amount of money. Like people who have borrowed money at an interest rate before inflation, banks in which people have deposited money on an pre-inflation interest rates, businesses with long term fixed cost contract with other businesses and workers. |
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By *otMe66Man 7 weeks ago
Terra Firma |
Anyone who owns commodities that cost nothing more to produce / own / or is an investable asset is the real winner.
Loans : people / organisations who have borrowed money are in effect paying back the loan with money that is worth less than when they took out the loan.
Losers: anyone who is living just about within their means, prices go up and it leaves them with choices that will eventually leading them to doing without something. |
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Consumers lose as prices for goods rise reducing choice.
The government win because they can use it as leverage to control public spending.
The country loses because the value of the £ is adversely effected, making the the price of imports and exports more expensive.
The government can't control it because there is a little thing called the black market which undermines any government's fiscal policy. So when the say they have inflation is under control it's a load of bs. |
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Ideally prices stay the same or rise slowly hence the BoE 2% inflation target.
This gives stability and encourages people to buy stuff when they need it.
High inflation makes people feel poorer as their money doesn’t go as far. This leads to a cycle of demands for pay increases to match inflation, which tends to fuel further increases in inflation.
Deflation, where prices drop, is also a bad thing in many ways as it tends to make people defer purchases. Why buy something now when it will be cheaper next month? This therefore contracts the economy. |
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I reckon Boomers benefitted enormously from the 70s trend for home ownership and prevailing double figure inflation. Over a few years, people accumulated huge assets with moderate mortgage repayments. A 'blessed' generation in many ways (I am one myself). |
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By *irldnCouple 7 weeks ago
Brighton |
"I reckon Boomers benefitted enormously from the 70s trend for home ownership and prevailing double figure inflation. Over a few years, people accumulated huge assets with moderate mortgage repayments. A 'blessed' generation in many ways (I am one myself)."
If you are 57 (not Fab age 57  ) then you are Gen X not a Boomer. That was your parents group 
But yeah the Boomers did well, Gen X pretty well, Millennials and Gen Y less so. |
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"I reckon Boomers benefitted enormously from the 70s trend for home ownership and prevailing double figure inflation. Over a few years, people accumulated huge assets with moderate mortgage repayments. A 'blessed' generation in many ways (I am one myself)."
And final salary pension schemes
Another elephant in the room for those retiring on money purchase schemes ( average fund value £31,000) |
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