> So you do, at least, understand that a person with more debt benefits more than a person with less debt?
I believe I explicitly stated it benefits debtors over creditors. Poor folks are leveraged substantially more than rich folks, hence the disproportionate benefit.
Without inflation they'd be assessed the same interest rates, with the same risk premiums, but would not benefit from inflation so this is strictly worse, is it not?
> So you are aware that poor people generally pay a premium for loans, based on their risk of default? And you see how that impacts their access to credit? And how this leads to wealthy people benefitting more?
That has nothing to do with inflation which impacts the principal of issued loans.
> Poor folks are leveraged substantially more than rich folks, hence the disproportionate benefit.
This is false, rich folks have far more debt than poor people, not to mention access to lower prices for loans.
> Without inflation they'd be assessed the same interest rates, with the same risk premiums, but would not benefit from inflation so this is strictly worse, is it not?
You’re right that the rich, who hold vastly greater amounts of debt, would not benefit from the central bank depreciating their liabilities.
> That has nothing to do with inflation which impacts the principal of issued loans.
When the principal decreases by 2% per annum and the rich person pays 2% interest and the poor person oays %600 percent, the rich person gets free credit while the poor person pays ~600% per annum. Surely you can see that this is worse for the poor person, even before factoring in that the rich person gets capital gains from asset inflation while the poor person gets real decrease in wages.
I believe I explicitly stated it benefits debtors over creditors. Poor folks are leveraged substantially more than rich folks, hence the disproportionate benefit.
Without inflation they'd be assessed the same interest rates, with the same risk premiums, but would not benefit from inflation so this is strictly worse, is it not?
> So you are aware that poor people generally pay a premium for loans, based on their risk of default? And you see how that impacts their access to credit? And how this leads to wealthy people benefitting more?
That has nothing to do with inflation which impacts the principal of issued loans.