6 ms·
Who would have guessed printing a bunch of money would be a working class tax
by kev009 29d ago
Who would have guessed printing a bunch of money would be a working class tax
- deleted 29d ago[deleted]
- eru 29d agoThe working class doesn't hold that much in cash, do they? Competition in the labour market means nominal wages go up when inflation goes up. Many working class people have mortgages (though I'm not sure whether they have fixed rate mortgages?)
- 9x39 29d agoWorking class typically rely solely on wages and have little to no wealth. So any purchasing power decrease is often referred to as a hidden tax on wages. https://en.wikipedia.org/wiki/Wealth_inequality_in_the_United_States https://en.wikipedia.org/wiki/Wealth_inequality_in_the_Unite... Competition as a sellers’ market drives wages up, like anything AI connected today. Buyers’ markets drive wages down - GFC, H1Bs. Working class mortgages got obliterated after the GFC and never recovered. https://fred.stlouisfed.org/series/WFRBSB50210 https://fred.stlouisfed.org/series/WFRBSB50210 Mortgages are about 92% fixed rate (vs ARM). https://www.stlouisfed.org/on-the-economy/2024/feb/which-households-prefer-arms-fixed-rate-mortgages https://www.stlouisfed.org/on-the-economy/2024/feb/which-hou...
- eru 29d agoThanks for looking up the data. > Working class typically rely solely on wages and have little to no wealth. So any purchasing power decrease is often referred to as a hidden tax on wages. That's only true if wages are fixed. They typically aren't, especially when people move jobs. Kevin Erdmann has some good writing about mortgages before and after the GFC.