Firstly, I would generally roll the rise during the pandemic into the effects, as that’s when a lot of the inflation that would later be messured actually got going, and in this scenario you would likely see a similar effect to the whole, but I will consede that you likely much in the way in gains, especially given the effects such a recession would have across the board.
That does not have an effect on my main point, which is that a sustained very high inflation/hyperinflation during a loss of confidence crisis is going to do far, far more damage to people who’s source of income is earning a return on their assets and investments. In that earlier fifty percent inflation example you would need working class real wages to nearly half to have a similar effect.
Workers adjusted real wages have not caught back up to where they were Q1 2021, and have begun declining again…
Firstly, I would generally roll the rise during the pandemic into the effects, as that’s when a lot of the inflation that would later be messured actually got going, and in this scenario you would likely see a similar effect to the whole, but I will consede that you likely much in the way in gains, especially given the effects such a recession would have across the board.
That does not have an effect on my main point, which is that a sustained very high inflation/hyperinflation during a loss of confidence crisis is going to do far, far more damage to people who’s source of income is earning a return on their assets and investments. In that earlier fifty percent inflation example you would need working class real wages to nearly half to have a similar effect.