Does the existance of a robust and healthy

[applegrove]

Last edited Wed Aug 6, 2014, 09:05 PM - Edit history (1)

middle class cause inflation, and thus erode the wealth of the rich? Is this why the GOP attack the foundations of middle class existance? Cause I read somewhere yesterday that constant inflation didn‘t exist until the 20th Century. And neither did robust middle classes. So with inflation the rich have had to invest really hard to beat inflation over the years. And, by going after all social programs that create middle class folk, and all regulations that grow the middle class, the rich won‘t face inflation and get all of their stock growth as pure profit. What narcissism. To go about such drastic change to make life even easier for themselves.IMHO

[Warpy]

1. The rich have always blamed inflation on wages

something they got away with in the 1970s when OPEC caused double digit inflation. Their propaganda people blamed it on greed from unions and the official policy since then has been to depress wages relative to inflation.

Unfortunately, the rich never seemed to realize that fiat currency has inflation built right into it.

So we've had 40 years of starving labor and fattening the rich, with inflation (real inflation, not the crap numbers Greescam lied to us about) and look at the country it has given us.

I don't like what this country has become.

[LittleBlue]

2. Inflation has always existed

Mansa Musa rode into Cairo in the 14th century and devalued gold for years by spending and giving away an enormous sum of it during his hajj. The excessive supply of gold, without a corresponding increase in the number of goods produced, means much more gold was chasing the same amount of goods. Which makes prices rise.

Inflation as it currently exists is basically a tax on the poor and others who either rely on savings or fixed-income (or incomes that won't rise much even if prices rise), basically anything that isn't an inflation-protected asset (housing, stocks, etc.) By printing more money, the wealthy can possess more wealth because it increases the prices of their inflation-protected assets at the expense of people who rely on incomes and savings.

Robust middle classes didn't exist until the 20th century.