alt Hacker NewsThe working class doesn't hold that much in cash, do they? Competition in the labour market means nominal wages go up when inflation goes up. Many working class people have mortgages (though I'm not sure whether they have fixed rate mortgages?)
The working class doesn't hold that much in cash, do they? Competition in the labour market means nominal wages go up when inflation goes up. Many working class people have mortgages (though I'm not sure whether they have fixed rate mortgages?)
Working class typically rely solely on wages and have little to no wealth. So any purchasing power decrease is often referred to as a hidden tax on wages.
https://en.wikipedia.org/wiki/Wealth_inequality_in_the_Unite...
Competition as a sellers’ market drives wages up, like anything AI connected today. Buyers’ markets drive wages down - GFC, H1Bs.
Working class mortgages got obliterated after the GFC and never recovered.
https://fred.stlouisfed.org/series/WFRBSB50210
Mortgages are about 92% fixed rate (vs ARM).
https://www.stlouisfed.org/on-the-economy/2024/feb/which-hou...