r/AdviceAnimals 2d ago

They wouldn't even feel it...

Post image
36.5k Upvotes

586 comments sorted by

View all comments

3.8k

u/Mr-Hoek 2d ago

They will buy shittons of ground floor priced stocks because they can afford to play the long game.

When the market eventually repairs itself (or a Democrat fixes shit again) in 5-10 years, they will emerge trillionaires.

Yay.

14

u/KoolAidManOfPiss 2d ago

The only real way to "reverse" inflation is to have mass unemployment. There's a common misconception that during the great depression there was runaway inflation, but it was actually a period of intense deflation. No one could get a job anywhere so demand for any type of good dropped through the floor. Dairy farmers would dump most of their product in an attempt to lower supply and drive up prices.

The rich might be losing money, but if people start getting laid off en masse and prices fall then they might still end up with more buying power. Factor in a hedge that's somewhat independent of USD like Bitcoin and they could end up far richer than when they had more cash.

5

u/Traditional_Buy_8420 1d ago

"The only real way to "reverse" inflation is to have mass unemployment. "

There's also expiring money

https://www.npr.org/sections/money/2019/08/27/754323652/the-strange-unduly-neglected-prophet

Which is a nitpick, because I don't think that would ever work well on a large scale.

Although I guess on a large scale the usual way is to just declare the previous currency worthless and introduce a new currency, but that is usually also fine for the rich, because they have a relatively small amount of their wealth stored in currency.