There's a lot of talk about inflation and its causes. Is it corporate greed? Supply chain issues? One clear base cause of inflation less talked about is having an inflationary currency supply. Any other inflation caused by supply chain issues, corporate greed, lack of market competition, etc is just added on top of that. Fiat...
Really rich people are not affected as much by inflation as they take out loans to pay for their day-to-day life which is then paid back in the currency that is inflating, while it's paid with the interest they earn with company shares. Those shares are not directly hit by inflation like the loan is.
This lifestyle/procedure makes it easier to maintain your wealth compared to a regular person.
See in your example you say company value rose by 4% and inflation by 8% so they loose money, but that also means the company performed worse than before. Think of it like gold, when I have 1 ounce of gold and the dollar value sinks due to inflation, the value of my gold did not change, it's still one ounce of gold and if the gold price is not sinking for some reason, the cost/buying price of gold will most likely rise 8%, because the currency is worth 8% less but the value of gold staid the same.
No, you can take out huge loans over a year with putting stocks as collateral so its a low risk deal for the bank and have fixed interest rates if you pay back in the same year. If you are really rich you have access to "tools" which make participating in the financial market systematically easier.
We shouldn't have to work 40 hours a week to afford a basic life. We do because our currency is constantly losing value. This is by design.
There's a lot of talk about inflation and its causes. Is it corporate greed? Supply chain issues? One clear base cause of inflation less talked about is having an inflationary currency supply. Any other inflation caused by supply chain issues, corporate greed, lack of market competition, etc is just added on top of that. Fiat...
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xkcd #1172: Workflow ( feddit.de )
Title text: There are probably children out there holding down spacebar to stay warm in the winter! YOUR UPDATE MURDERS CHILDREN....