Why is this? Many wealthy people own rental properties.

The same group CNNвЂ™s article claims will be hurt by inflation.

Inflation on materials could wipe out any minuscule gains made against your mortgage payment.Дo you know who doesnвЂ™t suffer against increases to their property taxes and utilities? The rich. Lumber prices alone are up 124% since August 2021. Expect homeowners insurance to rise accordingly, feeding into an increased monthly payment.ДЄnd then thereвЂ™s the cost of home repairs. Most people pay their local and school taxes out of their monthly mortgage payment, which will rise in conjunction. As inflation drives up the costs for local governments and school systems, your property taxes will also increase. Your utility bills like electricity and water will increase. Yes, your financial balance sheet is improved by the home value increasing and the debt-to-equity ratio tipping in your favor, but costs associate with the home climb with inflation. If your home increases from $150,000 to $200,000 due to inflation but your mortgage is only for the $150,000 - you made out.Д®xcept not really. The article discusses how working class Americans get a вЂdiscountвЂ™ on their mortgage, as inflation drives up the price of their home, but the fixed-rate mortgage payments and interest rate remain stagnant. As your income increases, youвЂ™re essentially getting a discount on what you have to repay. The same inflation benefit applies to anyone paying off federal student loans, which also have a fixed interest rate. Meanwhile, wages are rising along with prices, essentially shrinking the real value of that debt. Claim: Inflation gives homeowners a вЂdiscountвЂ™ Households do not like the inflation story, and rightly so.вЂќ вЂњThis is why when you look at consumer confidence, itвЂ™s really taking a beating. вЂњFor now, inflation is going to continue to run above very solid wage growth,вЂќ said Joseph LaVorgna, chief economist for the Americas at Natixis and former chief economist for the National Economic Council during the Trump administration. On November 10, CNBC published an article titled вЂњ Inflation has taken away all the wage gains for workers and then some.вЂќ It, too, reference the BLS October statistics. In fact, real wages have been negative since April. How can one be empowered to pay down debt when theyвЂ™re losing the race against the price of everyday items? (The CPI doesnвЂ™t even include energy prices, but I digressвЂ¦) Put another way, wages arenвЂ™t keeping pace with inflation on average. This means that although wages increasedвЂ¦ inflation increased more, resulting in a net loss of purchasing power. Bureau of Labor Statistics (BLS) reported that real earnings in October 2021 decreased half a percent, a result of вЂњan increase of 0.4 percent in average hourly earnings combined with an increase of 0.9 percent in the Consumer Price Index for All Urban Consumers.вЂќ However, real earnings, or wage increases versus inflation, is negative. The article is correct in that wages are indeed going up. ThatвЂ™s because wages are going up, which not only empowers workers but also gives them more money to pay down debt. Inflation can actually be a good thing for many working-class Americans, especially those with fixed-rate debt like a 30-year mortgage.

Claim: Wages are going up, вЂњempowering workersвЂќ I had to stop and comment on possibly the dumbest article IвЂ™ve ever seen put out by the mainstream media. Coincidentally, I was halfway through a blog post on protecting oneвЂ™s self from inflation when MorrowвЂ™s article was published two days ago. This counterpunch to an article might turn out to be a new format. At worst, itвЂ™s a dangerous propaganda piece covering for an administration currently struggling with the inflation demon. The article, titled вЂњ Why inflation can actually be good for everyday Americans and bad for rich people,вЂќ attempts to make the case that inflation is actually a вЂњgood thingвЂќ for wage earners and middle-class Americans and hurtful to вЂњrich people.вЂќ At best, itвЂ™s looking at the economy through rose-colored glasses. In todayвЂ™s blog post, weвЂ™ll be completely dismantling an asinine article published this week by Allison Morrow and Anneken Tappe for CNN Business.

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