If you pay the same amount each month for your mortgage for 25 years and inflation is 2% each year the last payment should be half as valuable as the first (edit: about two thirds, actually. Maths!), so you’re encouraged to buy on credit.
But this is only meaningful if your income is also going up, right? Otherwise you’re still getting fucked by inflation. You’re paying the same percentage of your income towards that mortgage but all your other expenses are going up.
Absolutely. Inflation isn’t just inflation, different things move at different rates, and that includes salaries.
But that’s why you want collective bargaining and an ongoing conversation about salaries, including periodic revisions of minimum wage regulations. We shouldn’t let oligarchs tell us that inflation is what degrades salaries, it’s the mismatch between salary growth and inflation. Inflation should be part of the calculation and salaries should be negotiated on a regular basis and regulated to prevent the system from breaking at the bottom.
But this is only meaningful if your income is also going up, right? Otherwise you’re still getting fucked by inflation. You’re paying the same percentage of your income towards that mortgage but all your other expenses are going up.
Absolutely. Inflation isn’t just inflation, different things move at different rates, and that includes salaries.
But that’s why you want collective bargaining and an ongoing conversation about salaries, including periodic revisions of minimum wage regulations. We shouldn’t let oligarchs tell us that inflation is what degrades salaries, it’s the mismatch between salary growth and inflation. Inflation should be part of the calculation and salaries should be negotiated on a regular basis and regulated to prevent the system from breaking at the bottom.