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[–] 7 points 3 years ago (2 children)

This is exactly how inflation is a tax on the poor: there are ways to counteract inflation, which only become available at a certain level of wealth.

Basically disposable income is safe because you can convert it; and non-disposable income is not safe because you can’t convert it.

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  • [–] 2 points 3 years ago

    You have a point but how much cash are we talking about? If you have $10k-$20k sitting around in a chequing account that's only $200-$400 you are losing to inflation. Things like the earned income tax credit would give you back like $500-$8000. They may not seem super related but in general it's easier to compensate those lower income folks for inflation than trying to change the inflation target.

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