Inflation surely hurts the poor more than the rich!

[CTO114]

Inflation isn't just about the persistent increase of goods and services, with a closer look, you'll realize it's more than then. Below, you'll get to know why it is a form of wealth transfer from the poor to the rich.

The poor often spend their income on essentials that is subject or vulnerable to inflation; rent, food and even transportation, so they become direct victim of the persistent increase in prices.
Looking further most poor people are income earners, and small business owners relying hugely on wages and salaries, so when inflation hits hard their income drastically takes a hit.

On the flip side, the rich hold assets; stock and even real estates, they convert their cash to assets and these assets value is not affected by inflationary trends. While the poor hold cash operating from paycheck to paycheck. So while their purchasing power takes a hit, the rich can see their wealth grow.

The rich can adapt to inflation by just cutting down luxury spending, but the poor can't adjust, because they have to spend on essentials.

In conclusion inflation quietly moves purchasing power away from people who hold cash, to people who hold assets.
While the poor hold cash, inflation hits and the value of their purchasing power reduce, but the rich hold assets like real estate, stocks and businesses, when inflation hits, the value of their asset increases.

[Joy_learns_crypto]

Inflation will affect the poor if they hold more cash than asset and will not affect the rich if they hold more asset than cash like you correctly describe, but in the long run inflation will always affect everyone in the country where the inflation is occurring.
The rich will still buy things from that country even if they hold asset they will still need cash to make purchases and if they are unfortunate enough to sell their assets into the inflated currency they will be at loss especially if they have bought the asset when their currency was not as inflated.

[Gost ms]

Every person's source of income and knowledge is not the same. A poor person may not know what inflation is or if he does know what inflation is, he may not know how to fight inflation. A poor person's income is very low due to which all his expenses are exhausted to meet his family expenses and personal expenses. He may not be able to do much with the amount of money that is left with him. But if they gain knowledge, they may be able to fight inflation and protect themselves from inflation.

A rich person knows how inflation happens and how to fight inflation. If he is not aware of this, then he has heard about this inflation from some source. Because a rich person has many people appointed to control his financial situation, they control his financial situation properly and do everything that can be done to protect him from inflation.

[Ambatman]

The main reason is because of debt
The rich most times makes use of debt to make more which is in fact inflation friendly.
Wages takes time to react to increase in consumer goods
There's difference between a person that can buy something now
And another that would have to save
As time goes on the value of their cash drops.

[Fiatless]

Every person's source of income and knowledge is not the same. A poor person may not know what inflation is or if he does know what inflation is, he may not know how to fight inflation. A poor person's income is very low due to which all his expenses are exhausted to meet his family expenses and personal expenses. He may not be able to do much with the amount of money that is left with him. But if they gain knowledge, they may be able to fight inflation and protect themselves from inflation.

There is a difference between having knowledge and having the financial power to apply the learned financial skills. The focus of the poor should be how to devise means to increase their income. Having more money will encourage saving which could be used for investment.

I see some poor people want to show off so they spend without investing. This set of poor people is ignorant and is a victim of the effects of inflation. No matter how poor one is, setting aside funds for investment is essential. Bitcoin could be bought with sa mall amount and it could serve as a hedge against inflation.

[Mhizlove]

Inflation don't affect everyone the same way this shows that the system do favour those that already has something while others struggling to meet up. It's not as if the rich don't feel it too, they're humans too everyone feels the pressure too it's just that some people has a way of managing the situation than some people that's why financial knowledge and planning comes in and it's very important let not just be surviving but be at a better position in a good side of things in the society or system

[AprilioMP]

In conclusion inflation quietly moves purchasing power away from people who hold cash, to people who hold assets.
While the poor hold cash, inflation hits and the value of their purchasing power reduce, but the rich hold assets like real estate, stocks and businesses, when inflation hits, the value of their asset increases.

For me, it all comes down to financial capability. If resources are scarce, people will inevitably be grateful for their daily necessities rather than investing.
If the focus is on the upper class or the wealthy, and they don’t know how to use their wealth or are unable to preserve and protect it, that’s foolish.
The poor can only work and live as I mentioned above. There’s no need to debate it further because that’s part of their fate—one they cannot change.

[ZAINmalik75]

Looking further most poor people are income earners, and small business owners relying hugely on wages and salaries, so when inflation hits hard their income drastically takes a hit.

If they are business owners, they are not taking wages or salaries, and their income is not going to take any hits. Because let's say I sell gas, petrol, or fertilizers, anything that is being moved by vehicles that run on oil. If the expenses are increasing, what do you think is going to happen? Business owners will increase the rates of everything they are selling. Once the expenses increase, even if they have old stock with old expenses, they can make a lot of profit with new rates. And this is not unfair, they are forced to do it. They are still giving the same salary to their workers. So most business owners are just increasing rates, they are not as affected as salary takers are.

Because their salaries are fixed.

when inflation hits, the value of their asset increases.

Not the value but numbers

[un_rank]

Inflation along with every other financial crisis will always affect the poor more than the rich cause the rich have disposable income which gives them a buffer in such situations even if they do not hold any assets of value and just keep eating into their cash they have a lot of it to possibly outlast the crisis. The poor does not have any buffer, they will quickly have to resort to their savings which can also easily run out.

- Jay -

[Ucy]

Well, if this is true, it becomes a serious challenge to leaders who care about the poor while psychopaths will most likely rejoice or gloat over it.
As a leader, you will be heartbroken to know that your subjects who are more like your children are exposed to unfair economic reality due to their economic status. The next thing to do in this case is to work hard to eliminate it and ensure fairness.  I for example would make sure the poor get enough assistance, subsidy, fair share of their hardwork, etc, but also worry that psychopaths who hardly feel bad about the condition of the poor will hate it. They prefer an environment where the poor are completely out-competed  cheated, robbed, until they are humiliated or wiped out of existence by poor health, shock, hunger etc. Atleast I know what it feels like to be a hardworking poor person — you try to do what is right and avoid the bad, but it seems those cutting corners or doing wrong are zooming pass you in riches, and you are heartbroken and wondering why your effort to be good is not rewarded, and then the temptation to do wrong and be rich grows. Since understanding this fact more clearly I developed more sympathy towards those in that condition and never again feeling guilty or foolish about being concerned about them


One of the last things a normal human would consider when dealing with the poor/vulnerable is to openly treat or speak about them in condescending manner. It's the kind of thing you find in jungles, while in humble human societies the hardworking poor are deliberately honored or treated with respect by the rich. The idea or reason behind this is not to hurt their feelings or let them be sad about their condition. This is part of the reasons the rich in such society are encouraged to bring themselves low regardless of their wealth.


By the way, the unfairness of the fiat inflation is one of the reasons we have Bitcoin. It's mostly to protect the wealth of the ordinary people since the rich benefit from the fiat inflation,  get bailed out during economic crisis, etc. But as the poor or ordinary ones are finally having a relief in the Bitcoin monetary system, the rich try to hijack it and convince them that they are the reason why Bitcoin is what it is today, and tried tricking them into another wealth transfer while they buy and hold. Bitcoin has been doing really well for the ordinary people without the rich. The rich were threatened by this and try to  hijack it but failed

[letteredhub]

Every person's source of income and knowledge is not the same. A poor person may not know what inflation is or if he does know what inflation is, he may not know how to fight inflation. A poor person's income is very low due to which all his expenses are exhausted to meet his family expenses and personal expenses. He may not be able to do much with the amount of money that is left with him. But if they gain knowledge, they may be able to fight inflation and protect themselves from inflation.
...

Knowledge is everything and no man can make success or grow beyond his level of knowledge which is why the more knowledgeable a person is the more they convert that knowledge into wealth creation means. The poor man always thinks of how the survive the present and as long as his meagre salary provides his daily basic needs he's contented and damn satisfied with that, which is why every heighten inflation hits them theote than it hits the rich class who have secured their wealth in assets that it reproduces in value within extend period of time.

[Findingnemo]

It is not the problem of rich people to make the poor people better, all they will focus is how to make more money and that's how it works. Being rich is no one's problem except themselves they are the one who needs to work and change their fate.

Rich loves the inflation because mostly they will run everything with debts not from their savings, so whenever you see the inflation, then it will make their stock value to go higher so they can sell it for higher price but the amount of debt will just remain same so in practice, they make money from the inflation.

This is another reason why the rich get richer.

[Zaguru12]

The main reason is because of debt
The rich most times makes use of debt to make more which is in fact inflation friendly.
Wages takes time to react to increase in consumer goods
There's difference between a person that can buy something now
And another that would have to save
As time goes on the value of their cash drops.

I definitely agree with you on this point, In our early days I was usually curious about why do rich or wealthy business owners take loan when they plan to expand their businesses even though they have the financial capabilities to actually build that new business without borrowing. It is later that I learnt that aside the business profit been able to Carter for the loan, most of them do this to help solve inflation problem.

The largest set of people who holds fiat currencies are the poor people because this is the only affordable means of savings for them ( before the coming of bitcoin) and during times of inflation or even recession this is the thing that gets hit the hardest so that’s why they fall and affects more the holders.

The rich can even get to acquire more assets cheaper in this period because they have emergency funds to help see through

[Fortify]

Inflation isn't just about the persistent increase of goods and services, with a closer look, you'll realize it's more than then. Below, you'll get to know why it is a form of wealth transfer from the poor to the rich.

In conclusion inflation quietly moves purchasing power away from people who hold cash, to people who hold assets.
While the poor hold cash, inflation hits and the value of their purchasing power reduce, but the rich hold assets like real estate, stocks and businesses, when inflation hits, the value of their asset increases.

Everything hurts the poor more than the rich, that should be obvious. You mention the rich hold assets, but they're also allowed to hold much more debt and they learn how to manage it to their advantage too. Inflation is perhaps most grating on the middle class, as it ultimately diminishes and makes the line much smaller - people are much more often dropping out of that middle band into the poorer band, which in America's case might mean going without something vital like health insurance. There are different levels of rich, but in many cases people in that bracket could stop working tomorrow and if they have configured their finances well - potentially just live a modest life off their investments without losing any of their capital each year. The rich also get richer during recessions because it becomes a buying opportunity and they have a lot more spare financial capacity at the optimum time to acquire assets.

[Z-tight]

Many times people sound like rich and wealthy people should be apologetic because of their status, lol. Most people didn't just stumble on wealth, they worked their way up to it and they deserve whatever benefits that accompany it. We live in a capitalist system that is competitive, so there is every opportunity for someone who is poor to rise up to become rich.

Now to address the op, inflation reduces the purchasing power of the people, so it is only normal that it adversely affects those who have limited funds. Surely everyone feels the impact of inflation, but those who are rich already have a structure to cushion its effect on them and their businesses.

[aioc]

The rich can adapt to inflation by just cutting down luxury spending, but the poor can't adjust, because they have to spend on essentials.

If the government cannot address inflation and keep it at a manageable level, then there will be unrest and demonstrations because the poor cannot take this sitting down, while they go hungry.
The stability of the government lies in how it manages and addresses inflation; it's hard to be poor in a country hounded by corruption and mismanagement. The rich can just take it easy on their spending, while the poor need to add more loads to sustain their needs.

[Mrbluntzy]

The poor struggles with a lot of things and that's why they get affected more by inflation, they are limited to knowledge because they can not pay a massive amount of money to acquire the right information that would help them know how to increase their revenue,  they are limited to capital for improving their business and investment but the rich people have enough of the resources they need to make things happen in favour of their revenue increment, so it might seem like they are not affected by inflation since they can still get everything they want but the inflation also have some impacts on them when they are paying for services and goods that they can not render to themselves.

[abhiseshakana]

I can say that economic system is more favorable to anybody who have productive asset  and prepare hedging instruments against inflation. For middle class and lower class income, they must live paycheck to paycheck and gap between rich and poor are growing wider. Solution for inflation only  increase supply, efective and simple distribution, and government interventionthrough  price stabilization, reserve and subsidies.

So as not to widen the gap or enrich the upper class, we must streghtened community economic. Even can not fix inflation but it can maintain the purchasing power of loweer income class, consumption remain strong and money flow horizontally not vertically to rich calss. Beside that it can buffering lower class from dependence to big market during inflation. I hope with many society support this inequality will not getting worse and income distribution will be equitable not concentrate to economic elit.

[EluguHcman]

Inflation isn't just about the persistent increase of goods and services, with a closer look, you'll realize it's more than then. Below, you'll get to know why it is a form of wealth transfer from the poor to the rich.

Sometimes the inflation is not just intentionally an economy state of project to enrich the rich ones, it mostly breaks out of governments mismanagement of public funds and revenues.
The truth is that during those times or the inflation, the cost or values of goods and services does not know who is rich or not, everyone have to pay the same price on the devaluation of the cash too in the international exchange.
Just that those who are enlightened and affordable to store their funds to values which are potential to yield increase and can hold patiently without panic to sell over emergency needs can actually benefits from the state of high cost financial values.

Definitely will be times suffocating for average people especially the poor will be vulnerable to fall the victims due to their low incomes.
The unawared rich people do also cry if they don't plan efficiently during the inflation. Of course some goes broke too in the outcome of inflation.

[Akbarkoe]

The poor will definitely be affected in all forms.
Of course, the rich will definitely have the upper hand because they can save more into many assets so they will be much more secure financially.
The decline in purchasing power due to inflation can actually be fixed if the government wants to by raising the new salary standards because it is related to people's purchasing power and this also if we talk further will affect the domestic economic growth, the more the decline in purchasing power the worse it will be for the country's economy.

But it is an undeniable fact about how inflation kills slowly, so the solution needs to be owned by us, first strive so that our income rises, so that we have more money to save and invest, second invest in inflation-resistant assets, third do not rely on others / the government to improve the economy, it is better to rely on yourself so that you have the motivation to get out of poverty.