poor people are more than likely not close to "the money printer." even if old debts are devalued due to inflation, current and new debts will cost the same or more in proportion. if "being poor" means they are living paycheck to paycheck, then they at best don't move. at worst, inflation outpaces their yearly standard of living raise and they end up worse than where they were.

Inflation does benefit debtors. Your best argument: Nobody lends money to poor people with shitty credit.

Poorer people are hit harder by inflation as the proportion of their income is going on rising price goods (fuel, food etc) relative to wealthier (and asset rich) individuals.

Good question! Debt is a serious problem if you are poor... It can destroy relationships and families... ... In terms of economics, your friend is misunderstanding the long term 'arbitrage' opportunity of inflation vs debt, as over time the real value of debt repayment decreases, but this assumes your income also increases in line with inflation; and this opportunity only exists if you have used the debt to buy an appreciating asset, which rises in line with inflation, like a house. If you've managed to do that, you are quids in. But, if you use debt for consumption, you are financially screwed long term, as you have to keep increasing the debt as inflation increases. And btw, house price inflation creates its own issues as everyone on average earnings gets priced out... Try that, good luck!