United States | News & Politics

7151 readers

1137 users here now

founded 4 years ago

MODERATORS

Consumers are so demoralized by inflation and high rates they've given up on saving for the American Dream and are spending money instead, economist says (fortune.com)

submitted 4 months ago by yogthos@lemmy.ml to c/usa@lemmy.ml

12 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] Maoo@hexbear.net 8 points 4 months ago (1 children)

A high inflation regime promotes taking on debt as inflation makes it cheaper to pay off. That debt will get spent. If hyperinflation is threatened, buying inflation hedges is the "smart" move - real estate, gold, foreign assets. This similarly applies to simply not holding on to savings, as inflation devalues all money that you save at a faster rate than durable goods.

This is, literally, basic economics. And none of it is mentioned in the article.

[–] AcidLeaves@hexbear.net 4 points 4 months ago (1 children)

not really that simple tbh. stock market is having insane performances despite high inflation and the USD relative to other major currencies have also been gaining, not losing despite the high inflation because it's not the currency getting weaker it's stupid trade war shit and price gouging

[–] Maoo@hexbear.net 4 points 4 months ago

Inflation is just rising costs. It includes price gauging and having to pay tariffs.