Deflation ( or low inflation ) works for the rich moreso because who do you think holds all that debt? Mild inflation "ages out" the stock of debt.
We think 4% is a good rate of inflation for a recovery ( if a bit low ) but we're unable to maintain even 2%. This is incredibly strongly correlated with wealth inequality.
>Deflation ( or low inflation ) works for the rich moreso because who do you think holds all that debt?
The...US Government. I do not agree at all 'deflation' works better for the rich. I think you missed the part about being leveraged into assets. That's huge.
>but we're unable to maintain even 2%
Going by CPI? Take a look at the Dow and RE and tell me inflation is less than 2%.
No, you're right - the principal benefactor is the government, but that's pretty weird and unsustainable. Not to mention a massive conflict of interest.
Yes, by CPI. I think the rise in real estate is caused by the deflationary nature of the rest of the economy. The Dow? That's just our standard bellwether now.
We think 4% is a good rate of inflation for a recovery ( if a bit low ) but we're unable to maintain even 2%. This is incredibly strongly correlated with wealth inequality.