That is assuming they will raise payrates to match the hyperinflation. What if the cost of everything gets so high that you don’t have the dollars to pay off your land, even at the lower interest rates you financed it with?
What happens if prices go sky high but they don’t inflate the currency and goods simply become scarce?
I think we are facing a time where old assumptions about economics are going out the window!
That is assuming they will raise payrates to match the hyperinflation. What if the cost of everything gets so high that you don’t have the dollars to pay off your land, even at the lower interest rates you financed it with?
What happens if prices go sky high but they don’t inflate the currency and goods simply become scarce?
I think we are facing a time where old assumptions about economics are going out the window!
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That is certainly what happened during the big inflation in the USA, which was kicked off by an oil crisis—Wages did not begin to keep up. In fact some people were “frozen” on salary schedules and got no raises at all.
Nixon got the brilliant Idea to put on “price controls” so naturally, those products became scarce. For the first time in my life, huge sections of the grocery store would be empty and not refilled on a timely basis-hence I learned a valuable economic lesson.
And we really didn’t have near the amount of inflation that would be termed hyperinflation - like Venezuela and Argentina. So ya make some good points.