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kirstiepaige31
Jun 28, 2012, 07:42 AM
Who loses from inflation? Who wins from inflation?

paraclete
Jun 28, 2012, 04:54 PM
Who loses from inflation? Who wins from inflation?

Inflation increases the prices. As wages follow prices those subject to wage payments and fixed incomes have less purchasing power. Retirees are a victum. Inflation also impacts progressive taxation systems forcing people into higher tax brackets without increase in real earnings. Inflation therefore reduces disposable income

Inflation over time drives wage increases making it easier to meet mortgage and capital repayments