The real inflation problem is in asset inflation.

[CTO114]

When individuals, households, and even the government talk about inflation, one of  the first thing that comes to mind is food and service prices.

Within, there's the real underlying issues; housing inflation, stock inflation, land inflation and education inflation.  The aforementioned matters because, asset owners become wealthier while workers fall behind.

Could be unintentional, but today's monetary policy may widen inequality by inflating assets at a higher proportion to wages, consequently transferring wealth to the ownership class!

[Joy_learns_crypto]

But don’t forget the wealth being transferred are also inflated. Asset owners may seem to become wealthier by figures but the inflation that cause the asset price to inflate will also cause the money paid for that inflated asset to also not have any value too.
So the real question does selling your asset in an inflated economy make you actually wealthier. Many asset owners will hope they can sell their asset in more stable currencies and not an inflated one, an inflated economy is not a wealth creator.

[passwordnow]

When individuals, households, and even the government talk about inflation, one of  the first thing that comes to mind is food and service prices.

Within, there's the real underlying issues; housing inflation, stock inflation, land inflation and education inflation.  The aforementioned matters because, asset owners become wealthier while workers fall behind.

Could be unintentional, but today's monetary policy may widen inequality by inflating assets at a higher proportion to wages, consequently transferring wealth to the ownership class!

That's why the assets that we own are also a hedge against inflation. As the rate of everything increases, that also includes the value of the assets that we own. And despite bitcoin is a deflationary currency, it's volatile and with the inflation that happens globally there's also a relation to how its price goes up although on that part it is supply and demand.

[Botnake]

Depending on the asset, I guess. Because it has always been said that one of the best assets is land, since it does not really lose value the same way money does. Instead, over time, its value usually rises. So it is like real estate is really one of the best businesses. In reality, those who are working regular jobs are the ones affected the most because their income depends on their employer.

Companies can increase their selling price or service fee if they need to fight inflation, but employees cannot just dictate that their salary should increase. So everyone is affected by inflation, but those at the lower level are affected more.

[Pablo-wood]

So the real question does selling your asset in an inflated economy make you actually wealthier. Many asset owners will hope they can sell their asset in more stable currencies and not an inflated one, an inflated economy is not a wealth creator.

And my answer will always be no. Selling assets in an inflated economy will only pose a fake wealth that can be deceiving if not properly managed. That asset sold will cost even more to buy back. It is only rewarding if the asset in question is piled. That is to say there is more than enough reserved even if the owner decides to sell some, that way it could be said profit was made and some are kept for re-investment.

Could be unintentional, but today's monetary policy may widen inequality by inflating assets at a higher proportion to wages, consequently transferring wealth to the ownership class!

It should also be clear that inflation-driven inequality keeps the gap between social classes even wider, creating barriers that prevent moving upward into higher socioeconomic classes. Transferred wealth is undoubtedly advantageous in inflated economies but it doesn't guarantee automatic ownership class membership.

[Mhizlove]

But don’t forget the wealth being transferred are also inflated. Asset owners may seem to become wealthier by figures but the inflation that cause the asset price to inflate will also cause the money paid for that inflated asset to also not have any value too.
So the real question does selling your asset in an inflated economy make you actually wealthier. Many asset owners will hope they can sell their asset in more stable currencies and not an inflated one, an inflated economy is not a wealth creator.

In addition real wealth is not about the numbers that appears on papar alone but that actual purchasing power of that money. Okay if the asset value rise and at same time the price of cost  of goods and services rises too or even quicker, the owner may not see any real improvement. That's why investors are not only looking for profits,they also consider returns after accounting for inflation.the important thing is not how much you make from selling or after selling,but how much value that money can still buy later.

[uneng]

Where some see an issue, others see an opportunity. Since there are assets which are positively impacted by inflation, investors should be focusing on them. This way, they are protecting themselves against inflation on long run. What I see is that when such investments are mentioned, like real estate, there are instant criticism to it, as if it wasn't worthy or as if there were superior risks compared to another investments.

Well, each one is free to understand assets as they wish, but fact is that reality doesn't obey neither follows their point of view. So, inevitably, those who insist in going against assets which are benefited by inflation ends losing money or making little progress on long term.

[MRY]

But don’t forget the wealth being transferred are also inflated. Asset owners may seem to become wealthier by figures but the inflation that cause the asset price to inflate will also cause the money paid for that inflated asset to also not have any value too.
So the real question does selling your asset in an inflated economy make you actually wealthier. Many asset owners will hope they can sell their asset in more stable currencies and not an inflated one, an inflated economy is not a wealth creator.

In addition real wealth is not about the numbers that appears on papar alone but that actual purchasing power of that money. Okay if the asset value rise and at same time the price of cost  of goods and services rises too or even quicker, the owner may not see any real improvement. That's why investors are not only looking for profits,they also consider returns after accounting for inflation.the important thing is not how much you make from selling or after selling,but how much value that money can still buy later.

There is the truth that an asset being on the upswing in nominal value, is usually spurious since its growth does not correspond to real growth of purchasing power. The sale of asset in the soaring commodity prices is in fact a risk as it could devalue the actual capital being collected. Investment should be mainly geared towards earning return that are higher than the depreciation rate on the official currency.

[Fortify]

When individuals, households, and even the government talk about inflation, one of  the first thing that comes to mind is food and service prices.

Within, there's the real underlying issues; housing inflation, stock inflation, land inflation and education inflation.  The aforementioned matters because, asset owners become wealthier while workers fall behind.

Could be unintentional, but today's monetary policy may widen inequality by inflating assets at a higher proportion to wages, consequently transferring wealth to the ownership class!

Governments reward those who have, because those who have are generally older generations who are naturally more likely and able to put votes in. It really can be that simple, the younger generations will generally not make enough noise - even if they have the odd riots - to change that status quo. Those richer groups are also more likely to reinforce that situation as well, in particular the mega rich who are happier seeing people fighting among themselves rather than directing the anger at small group of people who have vastly too much money. It is the broken, yet most efficient, capitalist system that we live in where noble and progressive politicians get pushed aside by those with money who put special puppets in place to achieve their goals.

[Unknown Op]

When we talk about inflation we talk about the increasing prices of fuel , food , and daily expenses but we ignore the real inflation and increasing prices of assets like houses ,stocks, education, land , the people who won these assets get well wealthier , while those who are ordinary workers and work on monthly salaries their salaries remain same but the increasing prices of daily household items are becoming expensive, that  is making their life difficult they have to pay a huge education cost as well and  the gap between poor and rich keeps on increasing . economic growth is good but if the salary of an ordinary person is not increasing with increasing prices of the assets than this gap will continue to increase over the time.

[Ambatman]

I believe who has eaten or has food is the one that would start thinking about assets.
This is why the gap continues to grow bigger
And you have located a bug if you can utilize debt in financing these assets.

The aforementioned matters because, asset owners become wealthier while workers fall behind.

Wages tend to lag behind
This is why Bitcoin tend to or is supposed to rise when there is an inflation
Which is our normal in today's world and something the government drives to maintain.

[mu_enrico]

It roots back to monetary inflation, because fiat loses its value, and people cannot save money like in the past. People are "forced" to buy gold or other assets just to fight inflation. This situation will still persist as long as we use the same monetary system. The current solution (if you have money) is to adapt and ride the wave of the inflated market.

But we have another problem, i.e., non-assets that were inflated as well (like food and services). That's a different issue since it's related to business, innovation, and productivity, which create jobs so people can afford those things.

[Cheema02]

Where some see an issue, others see an opportunity. Since there are assets which are positively impacted by inflation, investors should be focusing on them. This way, they are protecting themselves against inflation on long run. What I see is that when such investments are mentioned, like real estate, there are instant criticism to it, as if it wasn't worthy or as if there were superior risks compared to another investments.

Well, each one is free to understand assets as they wish, but fact is that reality doesn't obey neither follows their point of view. So, inevitably, those who insist in going against assets which are benefited by inflation ends losing money or making little progress on long term.

Inflation has many affects on every communities but mainly it creates both challenges and opportunities. So that people who have the deep knowledge about market they already knows which assets can be purchased during inflation. So many business like real state it helps investors to preserve there wealth as a productive way. But every investment have a lot of risk and not guaranteed to success. Main reason behinds its that is many investors take investing gor short term so they ignores the longe teem benefits. On the other hand during inflation criticizes only investors is not fair  because market changed trend with in moment. So the learning point is that during inflation some individuals panicked but some prepare themselves already have a good plans to compete it.

[Kelward]

The real inflation problem or the root cause of inflation is not asset inflation or even the sudden high cost of goods and services, I believe that it goes further than that, these things that I mentioned are the effects of inflation. Inflation starts basically as a result of a lot of money pursuing fewer goods and services, when there is abundance of money circulating in an economy and there are no abundant goods to match it then money loses it's value.

The result of money losing it's value will make producers to increase price inorder to remain in business likewise the price of assets will increase but the increase will not make the asset owners to be richer because if they sell at a high price they will use the excess money to buy fewer goods in the market. If a government manages their economy well inflation will gradually begin to reduce, they can do so buy printing less money, encourage industrialization and provide basic amenities to help business owners to reduce cost of productions.

[Marvelockg]

Could be unintentional, but today's monetary policy may widen inequality by inflating assets at a higher proportion to wages, consequently transferring wealth to the ownership class!

Housing problem might be an issue but it's not as bad as it's the case when an average person can't afford food for his household. No matter how the cost of living gets really bad with regards other aspect of life, it never gets too serious untill it affects the aspect of feeding.

Inflation affects all aspects of life but it hits real bad when it touches on food. Ones theirs food crisis in a nation, it automatically distabilises every other things. Housing crisis is a major crisis, security is also a key area but the problem of food surpasses them all.

[MaeBTCTalk]

Got it. I’ll keep the answers realistic, natural, and original. Here’s a more human version for that post: I agree with this. Food and fuel inflation are the ones people feel first, but asset inflation is what really separates people over time.

If houses, land, stocks, and education keep rising faster than wages, workers are always behind. Even if their salary improves a little, the goalpost keeps moving. Asset owners benefit because the things they already own become more valuable, while others struggle just to enter the market. That is why inflation is not just about daily prices, it is also about access to wealth. 

[Yeesha]

Depending on the asset, I guess. Because it has always been said that one of the best assets is land, since it does not really lose value the same way money does. Instead, over time, its value usually rises. So it is like real estate is really one of the best businesses. In reality, those who are working regular jobs are the ones affected the most because their income depends on their employer.

Companies can increase their selling price or service fee if they need to fight inflation, but employees cannot just dictate that their salary should increase. So everyone is affected by inflation, but those at the lower level are affected more.

Exactly, one of the major tangible asset that is suitable for an individual is land, because other things can depreciate in use, and their values can be affected as a result of inflation, but land is very attractive and it appreciates in value. It can stay for some years without being affected, it provides financial support, assistance and security, and it can be transferred from generations to generations. And it an asset that can guarantee success because it can be productive, beneficial and generate more profits,because it can be use for various purposes such as housing, farming, or business development.

[Royal Cap]

I will say beyond monetary policy, changes in our standard of living play a big role here. Due to the development of technology and globalization, in the present era, people's spending on entertainment or advanced civic amenities beyond their basic needs has increased many times over, which people are forced to do. To meet this increased cost of living, it is no longer possible for ordinary employees to save extra money to invest in any assets. There are many of my neighbors, a large part of whose income goes towards the cost of modern education for their children and living in a good area, as a result of which they can never build up capital to buy land or shares. Therefore, if we understand the cost trap of our modern lifestyle without blaming only the policies of the central bank, then only the real reason for inequality will be clear.

[eightdots]

I will say beyond monetary policy, changes in our standard of living play a big role here. Due to the development of technology and globalization, in the present era, people's spending on entertainment or advanced civic amenities beyond their basic needs has increased many times over, which people are forced to do. To meet this increased cost of living, it is no longer possible for ordinary employees to save extra money to invest in any assets. There are many of my neighbors, a large part of whose income goes towards the cost of modern education for their children and living in a good area, as a result of which they can never build up capital to buy land or shares. Therefore, if we understand the cost trap of our modern lifestyle without blaming only the policies of the central bank, then only the real reason for inequality will be clear.

Controlling spending is becoming increasingly difficult because as lifestyles become more similar, everyone tries to imitate what they see others doing. Living standards are one of the biggest factors determining economic status. It's very difficult for a regular worker to save extra money because expenses are constantly increasing.

The expenses incurred to maintain high living standards make saving money harder. You need to save money to buy something, but rising costs make this impossible. For those who cannot invest, the constantly increasing prices of the things they want to buy are also an economic problem.

[Creeper0]

Is there any benefit to that? Are wealth owners outside the inflationary policy? What is the point of being rich? Owning more wealth, not owning money. If you consider money as the criterion of being rich, then you can go to Iran or Vietnam. If you own $1k in your country, you are a millionaire in those countries.

In fact, in the current monetary system, money has no value of its own, whether we give it value or not. But the value of wealth never decreases and is not affected by inflation or deflation. $10 five years ago and $10 today do not carry the same purchasing power. When the value of your wealth increases despite the purchasing power of the currency remaining the same, then consider that the value of your wealth has increased.