If A is making $1 and B is making $1000, A has to survive on 0.1% of what the economy produces.
If A is making $1001 and B is making $2000, A has to survive on 33% of what the economy produces.
Even if inflation could be exclusive to basic needs, causing A’s costs and B’s costs to both rise by $1000, the economy now heavily incentivizes more competition around satisfying basic needs. All rent going up equally regardless of unit size means it’s time to start building or converting luxury apartments to multiple low income apartments.
If A is making $1001 and B is making $2000, A has to survive on 33% of what the economy produces.
Even if inflation could be exclusive to basic needs, causing A’s costs and B’s costs to both rise by $1000, the economy now heavily incentivizes more competition around satisfying basic needs. All rent going up equally regardless of unit size means it’s time to start building or converting luxury apartments to multiple low income apartments.