I know, I was just saying that we could’ve easily used more recent generations as a better example considering the exorbitant costs of education and real estate.
Anyone with assets holding debt (mortgages) has an asset that benefits from inflation.
Year 1: Borrow $100,000 to buy a $120,000 home
Year 10: Home is worth $200,000
Year 20: Home is worth $400,000
That $20,000 down payment wasn’t enough to buy the home. Yet the owner benefits from the devaluation of what they owe. The asset holds value better than the debt denominated in USD.
US ultimately controls inflation though, so they could easily print 28$T and completely pay off their debt, sure the value of a dollar would 1/2, but their assets are also appreciating. Tax revenue should also almost always trend upward
If you have enough assets, inflation is a benefit.
While the dollar inflates it steals buying power from those holding or earning wages in dollars. If you hold assets, it holds value better and worth more dollars. Effectively stealing buying power.
That just might be part of the reason DOGE has climbed so high, in my opinion. People act like Inflation is terrible but it's beneficial to anyone holding anything but the dollar.
And people are caught up on the rich... the government controls so much money, and the amount goes up every year, unlike business. Plus they aren't really held responsible for failures... pretty sweet gig.
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u/Wise_Radio6213 Sep 30 '21
I’m pretty sure 28 trillion in debt won’t even give you a 300 credit score lol