After 1 year, you have repaid $100 and have $900 left to repay. Inflation is 3%. You have $0 in your chequing account. That $0 is still worth $0 after inflation but the $900 you have to repay is now worth 3% less or $874. Inflation gained you $26. Of course, this inflation is built into your interest rate so it's only unexpected inflation that truly benefits a person.
Did they? My salary has nearly doubled since COVID and I'm doing the same work.
Inflation doesn't actually reduce your purchasing power because the price of labor goes up with inflation. Inflation doesn't reduce labor income. Price of goods go up but so too does your income and your overall purchasing power stays the same.
Inflation actually helps the vast majority of Whites because most Whites have debt and inflation reduced their debt load.
I don’t think you understand how financing works.
Borrow $1000 to be repaid over 10 years.
After 1 year, you have repaid $100 and have $900 left to repay. Inflation is 3%. You have $0 in your chequing account. That $0 is still worth $0 after inflation but the $900 you have to repay is now worth 3% less or $874. Inflation gained you $26. Of course, this inflation is built into your interest rate so it's only unexpected inflation that truly benefits a person.
Yeah but money is becoming worthless. Good luck affording a house or beingg able to improve anything
But you already had $0 so what does it matter? At least your debt went down.
And so did your purchasing power.... and life conditions in general...
Did they? My salary has nearly doubled since COVID and I'm doing the same work.
Inflation doesn't actually reduce your purchasing power because the price of labor goes up with inflation. Inflation doesn't reduce labor income. Price of goods go up but so too does your income and your overall purchasing power stays the same.
Speak for yourself.
Oh, wait...