The point of doing high inflation is that it changes the balance of rewards between labor and wealth (owning debt), and that is where the resistance here comes from too. This will raise your wages, and destroy the values of your stocks.
You see, wealth IS debt. You should think of rich people's assets as fundamentally being some percentage of public+private debt.
But labor and wages aren't. Labor fundamentally represents some percentage of GDP.
So the effect of high inflation is that it lowers debt, dramatically and quickly. Stupid but somewhat accurage rule of thumb: 5 years at 10% inflation will lower debts by about half. While it leaves the dollar number that rich people own rising, it kills it in terms of percentage of GDP. The rewards for labor, meanwhile, don't change in terms of GDP, so they go up much more. The way government stimulates inflation is by paying its own employees much more, and raising pensions, unemployment, ... not financed by debt, financed by printing money, so employers are forced to pay more for labor to avoid people telling them to fuck off.
And, yes, this is (capitalist) economic orthodoxy, the part of capitalism that rich people hate, because it kills their ownership values. And, yes, things are more complicated than this simple picture, but in general this is true. However the economist is the economist. They preach (capitalist) economic orthodoxy the way the Pope defends Christianity. And that is just fine.
You see, wealth IS debt. You should think of rich people's assets as fundamentally being some percentage of public+private debt.
But labor and wages aren't. Labor fundamentally represents some percentage of GDP.
So the effect of high inflation is that it lowers debt, dramatically and quickly. Stupid but somewhat accurage rule of thumb: 5 years at 10% inflation will lower debts by about half. While it leaves the dollar number that rich people own rising, it kills it in terms of percentage of GDP. The rewards for labor, meanwhile, don't change in terms of GDP, so they go up much more. The way government stimulates inflation is by paying its own employees much more, and raising pensions, unemployment, ... not financed by debt, financed by printing money, so employers are forced to pay more for labor to avoid people telling them to fuck off.
And, yes, this is (capitalist) economic orthodoxy, the part of capitalism that rich people hate, because it kills their ownership values. And, yes, things are more complicated than this simple picture, but in general this is true. However the economist is the economist. They preach (capitalist) economic orthodoxy the way the Pope defends Christianity. And that is just fine.