looks at the stock market, sees people thriving off of assets they already own during the pandemic Are you sure these people will be going back to work soon?
Right. We need a lot more inflation. We need to devalue the dollar to make exports more competitive and rebuild the working class. Push the people making money off the stock market back into the workforce.
Since for moderate levels of inflation (ie low double digits), stocks are inflation proof, if this actually improved competitiveness of American firms, moderate inflation would be a boon for stockholders. Big losers would be wage employers, who’d see their pay not catch up with growth of prices: this is in fact one of the core reasons we even target positive inflation in the first place, to counteract the effect of sticky wages that do not go down when necessary.
Low double digits is not considered moderate levels of inflation, if you're talking annually. In the 1970s in the US there were years of double digit inflation and real returns were negative.
