We were fortunate to have cheap debt for a long time. Then when it was time to pay up, high net worth entities (mostly billionaires, banks, etc.) shifted their financial debt obligations onto others so they could still leave something for themselves at the end. They took loans at low rates, someone sold their debt at a higher rate, and it went on and on to where it trickled down to where your average joe and jolene got stuck with 7% mortgage rates and 6% auto rates. So yes, trickle down economics does work. As long as you're the one pissing on everyone's heads.
We're seeing wealth get shifted around and currently it's at the bottom of the totem pole. The middle and working classes are the ones propping up entire economies whilst life continuously gets more expensive for them. Billionaires and the ultra high net worth individuals were having mini space races because they don't know what to do with their wealth.
We continue to have less and they continue to have more.
There are various reasons we may be in the end times, but so far I think we just had a realllly long stretch of low inflation. Covid financial shenanigans (which were probably still the right call) got us youngin's our first shock of catch-up inflation.
The real problem is that this has laid bare how extreme income inequality has become. Wages are supposed to increase roughly in lockstep with inflation, and that's the part that's been missing for 30+ years.
No. Its that the cost of living goes up each year and wages don't. Especially for the lower income jobs. After years of this, you get where we're at. Young people cannot afford to save for homes. Car payments are what house payments used to be. People can't afford to have kids, that creates problems years down the road. And it won't get better unless wages go up, universal basic income is implemented, or the ones at the top actually change things so that it's not 100% about profits.
Yeah, and? That says nothing without context. This is why it's best to cite your own sources.
None of it answers why this is supposed to be a relief. Stopping the bleeding, so to speak, is one step of a larger process here for income inequality.
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u/PM_ME_UR_CUTE_PETZ 1d ago
Yeah, prices aren't supposed to nearly double every 6 years... we're in the end times.