It’s that the effects are mostly felt by working Americans, who are not eligible for government assistance. They may have just missed the cut for eligibility. They may be earning larger amounts, or own a business.
But, their income will NOT rise significantly, even though inflation does.
On the other hand, we have those who care little about inflation, as they are protected from its effects:
- The government-supported poor – those receiving monthly family assistance, food stamps, insurance from government programs. If the value of the dollar shrinks, they are given Cost of Living increases. When the dollar deflates, they never lose that increase. It’s a one-way rachet.
- The government workers – from city to county to state to federal, they all have paycheck protections. Many have negotiated COLA protections, others have to spend some time lobbying for it. But, sooner or later, that protection kicks in.
- Social Security recipients – I’m getting a $40/month raise due to this (but, it’s more than offset by the increased costs I’m paying, just for food and other necessities).
- Government retirees – they already have VERY cushy benefits. But, also COLA.
Now, those who are already getting a check that’s on the higher end, will also receive more COLA. Those who barely qualified for retirement money will receive less. Non-coms retiring will get a little more, generals vastly more.
With almost half of the population receiving some assistance from government (some say MORE than half – a lot of that is in the form of goods or services – EBT, housing assistance, health insurance subsidies), that’s a huge chunk of the population that suffers less from inflation than the people who are providing that money in the form of their taxes. And, if you are getting back MORE money than you paid, you are a tax receiver, not a taxpayer.