Episode 234: Errors We Repeat in Economics
Words & Numbers
00:00
Inflation - Who Benefits From It?
Inflation means that prices go up and wages go up. So you're going to be earning more money. But here's the problem that always comes with inflation. Your wages don't keep pace with the expenses. In a condition in which inflation is hitting hard, there is a group of people who benefits tremendously. It's not regular people. It's people who hold a lot of debt,. Who incurred a debt when the dollar was worth a dollar. And then 30 years later, those dollars 30 years prior are worthless. You end up paying off the loan that you took with currency that means nothing to you anymore.
Transcript
Play full episode
