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You make $3, rent costs $1, you owe $300, it takes 150 to repay your debt

Inflation doubles everything

You make $6, rent costs $2, you owe $300, it takes 75 to repay debt

The person so wealthy they lent you money loses out, you gain.

If that's universally true, why would lenders lend in a high inflationary environment?

The interest is usually still more than inflation, they just make less money- and the alternatives for them are either cash, which loses more, or investments that are higher risk and more volatile.

Because they lose more if they just stick it in a box under the bed.

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