Hacker News Reader

Comment by strict9 | Hacker News Reader

Securities, property, crypto and other related assets are the real rising stars.

The rise of paychecks against that backdrop is very small. In the context of everything else that's increasing in price, it feels like a wash.

View on HN

Yup, thank the Federal Reserve. Elites profit the most from generous quantitative easing, aka "printer go brrr". Meanwhile you'll be paying double for a house.

Yes, all taxation is theft, but inflation is a tax that is especially bad since it is regressive (affects the poor most), extra-judicial (no one voted to authorize it), and hidden (or at least disguised).

In that case the poor should rejoice. The Fed has managed to keep inflation at 2% until the pandemic. It was 4% in the 80s and 3% in the 90s.

The fed has MEASURED it to be 2 percent using questionable methods. E.g. the biggest expense of yohr life is not counted

The Fed's mandate includes keeping unemployment low, and its main tool for that (lowering interest rates) has the side effect of inflating asset prices. But what else can they do? The alternative (fiscal policy) is congress's responsibility and outside their control. If congress decided to take action they would adjust accordingly, in the mean time they are doing what they are officially tasked with with the tools that they have, even if that may not be ideal.

Paying double for a house? You do know that you have to pay interest? Just because the resale price of the house is bigger doesn't mean financing has become more expensive.

Funny how the only dimension you can understand is the interest you have to pay. You know you still have to pay the house off right?

Reply on news.ycombinator.com