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    kirstiepaige31's Avatar
    kirstiepaige31 Posts: 23, Reputation: 1
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    #1

    Jun 28, 2012, 07:42 AM
    Inflation
    Who loses from inflation? Who wins from inflation?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Jun 28, 2012, 04:54 PM
    Quote Originally Posted by kirstiepaige31 View Post
    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
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