Is inflation harmful to the poor or to the rich?
Inflation does not rise in prices all at once, but gradually rises in stages, and those who receive new money early (mostly the rich) deprive others of their purchasing power.
To put it simply, ordinary people do not notice it every day, and when they have feelings...
Inflation, rising prices, do you usually feel it?
Let me tell you the conclusion first: inflation is good for the rich, the poor are basically insensitive, and the middle class is the most unlucky.
Maybe you understand that rich people are rich people, simply rich. In fact, rich people can become rich people, and their financial management skills are quite strong. Most of their wealth is in the form of assets rather than cash. When inflation occurs, the price of an asset rises, even more than inflation itself.
Because when inflation occurs, people with money want to exchange money for assets to reduce losses. Simply put, the meat in your refrigerator is an asset, and when prices rise, the rich man originally has more meat in the refrigerator than you, and he may even have several refrigerators.
Money is not actually scarce, it can be printed at any time, and it has no real value. And assets are scarce and valuable. The poor have very little cash in hand, work for a day and eat for a day. Well, if people can't eat, it will inevitably become a factor of social unrest, and the most basic living security for the sake of stability will definitely be available for the country, and this money is actually not much.
You can look at the minimum living guarantee in various provinces and cities, which rises every year, basically following the CPI. So inflation doesn't affect the poor, and even if it does, you will find out about it years later.
And the worst is the middle class, you say they are poor, they have a little money in their hands, in previous years they could spend hundreds of thousands of millions to buy a house, now the real estate is sluggish, invest in something else, and the threshold of ten million is not enough. As a result, the middle class could only watch the banknotes in their hands shrink.
Or rush to the hospital and take over the assets released by the rich in a high position. The investment products that exploded are to put it bluntly by the rich and released to us.
So, the middle class is really difficult, the base is large enough, and honest enough, and the money is still a little too much. Each class has its own "moat". Poor to middle class, moat is education. From the middle class to the rich, the moat is wealth, many, many riches. You'll see a lot of high-class middle class working for the rich and currying favor because they need wealth to raise their next generation.
The rich will also periodically harvest the middle class, enrich their wallets, and reduce the possibility of their descendants being squeezed out. The moat of the rich is actually blood, marriage, inheritance or something. Therefore, when it comes to anxiety, the middle class is the most anxious, the rich are second, and the poor are an indescribable and most reassuring.