/biz/ - Business & Finance

its actually a reasonable question, you would assume wages would have to rise to meet inflation at some point, but clearly that is not happening, I wonder why. . . .

>>52494616
pure coincidence

the money is worth less, so you owe less.

>>52494616
>tfw sales up 25% yoy 2 years straight
>2% raise
t-thanks

>>52494616
Because dumbass, businesses take the first step into capital, and wagies get the scraps. So if a business has to spend more on energy, products, and rent, there is less room to pay employees. Inflation will cause certain companies to close their doors for good and many will have to lay people off, sorry no raise for you wagie bum.

>>52494639
no, you owe the same amount you fucking moron

>>52494590
based. $1=$1

>>52494590
Biz is baffled. You have succeeded in your irony post.

>>52494616
Clearly we need to open up our southern border harder

The plebbitor's point, I believe is > you still owe 325k, still make the same salary and everything costs double. If the salaries kept up with inflation and interest rates did not rise, then it would eat away

>>52494590
It would eat away at your mortgage assuming that your income goes up equal to inflation

>>52494783
1eth=1etc
1btc=1btc
1USD=1USD

FX BTFO

>>52494590
The commonly understood factoid that "inflation erases debts" entirely relies on an assumption that the debt holders income will go up with inflation. This is happening with businesses and governments at the moment, but it is not happening with workers & households. Workers are instead facing the largest real declines of income in decades. Nominal income increase does reduce your income to debt ratio, but If inflation is higher than your income increase It doesn't become easier to service the debt (especially when increases inflation result in increases in interest). If your real income is falling but nominal income is increasing, the debt will become a smaller part of your income to service, but that doesn't mean it is "inflating away" because in real terms everything else is getting harder so you have less money left to service the debt. The only way debts become easier to service over term is real increases in income above inflation.

>>52494735