Quote:
Originally Posted by melpetezrinski
"Older retired people are the ones MOST hurt by inflation because they are on fixed incomes"
Actually poor people are hurt the most by inflation. They usually have no savings/investments to earn the higher interest and generally don't see pay increases that match the level of inflation. On the hand, the "older retired people" usually have social security, which IS indexed for inflation. If you are talking about pensions when you mention "fixed income" well, something tells me that you will be way ahead of the "poor" community if your are collecting social security AND a pension. IMO!
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It is true that "the poor" are going to be affected negatively when inflation is high. But, I was thinking that a large % of "the poor" are young and working. Because they are young and working they can adjust their lives MORE easily than older retired people. Being young they have more FLEXIBILITY to change their lives than older retired folks. Younger people can relocate easier to increase their earnings. Young people have the energy and ambition to work more hours or get a 2nd job. Older people have much LESS flexibility.
I can see the case for saying that poor people are the MOST affected by inflation. And experts may say that. But, I think that it is debatable. Rapid inflation is difficult and confusing for all economic groups. And there are subgroups like non-working poor and working retired people, which confuses the debate as to which group is most adversely affected by inflation.