Old vs. Young and Rich vs. Poor: How Government Creates Class Conflict \ stacker news ~econ

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Old vs. Young and Rich vs. Poor: How Government Creates Class Conflict mises.org/mises-wire/old-vs-young-and-rich-vs-poor-how-government-creates-class-conflict

245 sats \ 6 comments \ @Undisciplined 8h econ

By Joshua Mawhorter

Inflation does more than just force up prices. It destroys the wealth-producing process, especially with young people who are prevented from acquiring the same kinds of assets earlier generations procured. The result is inter-generational conflict.

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69 sats \ 5 replies \ @winteryeti 1h

I do agree differences in how generations are treated affect opportunity. But to blame inflation alone is scapegoating. Instead, the benefits boomers enjoyed in the US at least was due to the great abundance of resources the US had after WWII compared to other countries. We had more money to pay, provide, plan with than anyone else in the world. So what happened? We had lots of kids and everyone wanted to migrate to the US. Some 50 years later, our population here is exponentially bigger and those resources didn't grow at the same rate. Most manufacturing is gone, we are absolutely a service society where people are a dime a dozen or less, and government is bloated on tax dollars. It's no surprise younger generations feel hopeless; they are paying 100 or 1000 times what boomers paid for the same things we expect as a normal life. That's not inflation per se; that's supply and demand.

0 sats \ 4 replies \ @Undisciplined OP 1h

I think you're underappreciating what inflation has done. The new money hasn't entered the economy uniformly. It entered through corrupt and nonproductive channels, which allowed the recipients of the new money to bid scarce goods and services away from their most productive uses. That's how prices outpace production.

The point about America's relative standing after WWII is important, though, and often overlooked. How I think it matters most is that a huge share of the global economy was suppressed for decades because it was ruled by commies. That artificially reduced demand for inputs and allowed Americans to enjoy a very low cost of living. To some degree, what we're experiencing is the rest of the world catching up and bidding up prices closer to where they should have been.

69 sats \ 3 replies \ @winteryeti 1h

Oh trust me, I know inflation well. I've watched it's effect for 50+ years. But there's always been inflation. And back then people managed it with growing wages and opportunity. That's going away now due to competition, over-supply of labor and under-supply of resources and opportunity. Simple money is worthless without an increasing amount of it.

0 sats \ 2 replies \ @Undisciplined OP 1h

Actually inflation was relatively limited before the Boomers, so it's hard to say whether they were managing it better or if the economy just hadn't yet transitioned to one in perpetual debasement.

69 sats \ 1 reply \ @winteryeti 1h

Now there's a good point. My father in law, early 90s now, blindly signed up for every pension benefit, bank account thing, insurance thing whatever that came along. He had no financial planning or strategy in his noggin'. He just did what his employer said was good for him for retirement. He has 3 (yep 3) pensions (military, and 2 others), a long-term care plan, medicare, and a few other things. His assisted living and memory care is $10K a month, and 95% covered by all the above. That's what I mean about boomers having more than they ever knew. Think about what it will take to care for you in your 90s and how will that be paid for. That's the fundamental difference of generations now.

0 sats \ 0 replies \ @Undisciplined OP 1h

Partially, that's because no one used to expect to still be kicking at 90. Probably, we should be thinking about how to support ourselves at 110.