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This is so wrong I don't know where to start. I'll just say 2 things:

a) your charts are a classical example of "try hard enough and you will find 2 charts that correlate"

b) Inflation affects the poor because they don't, and sometimes can't, hold assets that traditionally protects the rich from inflation, such as real hard assets (such as real estate) and a sizeable chunk of stocks (some types) and bonds (TIPS and short duration). The poor lives paycheck to paycheck and see their income staying the same while everything else around them is increasing in price.




As I explained above, some assets protect you from inflation. Like stocks in companies with pricing power, real estate... But almost no assets protect you from the raise in the risk-free-rate that is usually following a high inflationary periods. As the risk-free-rate enters into model valuations of future cash-flows and a raise to it implies a multiple contraction.


Is it? What if we go even farther?

http://www.aboutinflation.com/_/rsrc/1369736776695/inflation...

Without looking back at the wealth inequality chart. What would you say was the result of the highly deflationary period of the 1920s? Increase of wealth inequality or decrease of wealth inequality?

Without looking back at the wealth inequality chart. What would you say was the result of the high inflationary period of the 1940s? Increase of wealth inequality or decrease of wealth inequality?




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