I do not believe that is a correct explanation.
The inflation started when Government drastically increased the money supply through expansion of bonded debts and used the new money to pay for their deficit spending.
The new money went into the pockets of Government supporters and their cronies. Everybody else got shorted as the new money bid up prices for goods and services.
Groups of people in a strong political position can raise their prices and wages to stay even with inflation. And why shouldn't they do so? Everybody else suffers a decline in living standards.
This is a liquidation economy.
Exhorting the losers to "be more productive" is an ineffective means to solve the problem of a decline in living standards. People cannot raise their productivity as fast as the Government can take it away through inflating the currency.
It’s a classic bust out.
Wish we could track all the Ukraine $$ to the third party countries where it is going.
“ The new money went into the pockets of Government supporters and their cronies.”
I believe this to be the correct explanation in today’s instance.
It is a pretty tough reach to say that that the working or middle class is benefiting from this inflationary period, while creditors are losing. There’s a bit too much ivy tower egghead and too little real world on the streets in that analysis.
Those with mortgages are supposedly gaining by being able to pay back in the future with cheaper dollars. That’s nice on paper…which is what home value is to most mortgage holders…and in theory. Unless that person is nearing retirement or already on a fixed income. And even if they are not in that situation that benefit means relatively little in real world terms, while paying much, much more for basic necessities like food and energy is a very real world impact.
Those who have benefited are the politically-connected…who are most likely in many cases the same creditors who are supposedly getting hammered by the results of the inflationary orgy. Yeah, Joe Biden isn’t doing this for his “partners and helpers”, he’s doing it all for the “little guy.”
This is a nice theoretical discussion that means very little to people in the middle and working classes, who are seeing real world impacts on their lives today…but hey, you get to pay down that mortgage in the 30 years with cheaper dollars! Your killing JP Morgan and Wells Fargo…no…really!