Normal
If inflation rises 1% from 3% to 4%, the buying power of their capital base is reduced by far more than the additional 0.5% of income they will receive.Especially when that additional 0.5% of income is taxed.of course they will feel good, because the income numbers will be higher than last year, but over all they are worse off, their $100K or what ever amount now has far less purchasing power, and the additional income didn’t come close to offsetting it’s erosion.
If inflation rises 1% from 3% to 4%, the buying power of their capital base is reduced by far more than the additional 0.5% of income they will receive.
Especially when that additional 0.5% of income is taxed.
of course they will feel good, because the income numbers will be higher than last year, but over all they are worse off, their $100K or what ever amount now has far less purchasing power, and the additional income didn’t come close to offsetting it’s erosion.
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