That's not the case at all. All this "gold standart" stuff and BTCs claim is to preserve wealth and poor people by definition don't have wealth.
Let me tell you how poor's life looks like when things are alright: You have a job that is good enough to cover your rent, your food, your bills and the instalments of your phone and computer and you might put aside a little bit that at some time in the future you might use to pay the downpayment of an apartment or a car.
When there's a steep inflation, be it anything from Turkey level to Venezuela level inflation, your salary gets adjusted to sustain your lifestyle and you put your money in Gold/USD/EUR/GBP/AnythingMoreStable or property.
That's it. Poor don't get any poorer just because of inflation. If anything, if the inflation has accelerated the disposable amount of your salary increases in real terms since your loan payments remain the same most of the time. The lender usually incorporates this into the rates but every now and then the inflation can be beyond the expected and you may end up paying much less in real terms.
When the things are not alright, the inflation is irrelevant to you. Whatever little you have, you are going to spend it before any meaningful impact due inflation. Next time you get money, you will get more to match the increase in the prices.
How do I know? I have been there. I've seen an inflation where you cannot predict the price of the bread tomorrow and I have seen a stable inflation where you simply incorporate it into your calculation and you are fine. I've lived in 2 two countries that dropped 0's from their currency, one dropped 000, the other dropped 000,000.
The inflation bites when it is unstable and unpredictable. Then businesses cannot incorporate the inflation into their cash flow and the economy slows down due to risk and difficulties of doing business. That's when the poor are impacted hard because that's when they loose jobs and switch to "things are not alright" mode.
>your salary gets adjusted to sustain your lifestyle
Wait, did I miss the application for this or something?
>and you put your money in Gold/USD/EUR/GBP/AnythingMoreStable or property.
Unless it's illegal.
> if the inflation has accelerated the disposable amount of your salary increases in real terms since your loan payments remain the same most of the time.
So you have a choice: 1. Take a leap of faith your income will get adjusted to real inflation numbers and take a loan hoping it will get eaten by inflation, at the same time increasing the debt pressure on your income and your psyche. 2. Not taking a loan so having no instrument to even partly negate the effect of inflation and having no adequate alternative instruments to loans/mortgages to save the value of your income.
If it's illegal that's not inflation's problem. You probably have dictatorship/controlled market problem. In any case, if there's a problem with the legal free market you use street vendors. That's how it's been done everywhere since ever.
You take a leap of faith that you will have this income for the foreseeable feature, why wouldn't you take a leap of faith that it going to be adjusted to fair market value?
If the economy is alright, you simply get paid you fair market compensation. When there's an inflation, you get adjustment.
Don't forget that inflation is not only for the chocolates and candies in the shop but also for the resources that businesses use and one of this resource is human resource, which means salaries are going up.
You don't think that at 20% of inflation businesses will end up with practically slave labour in few years, don't you? Salaries are always adjusted to meet the inflation. That's not because the businesses feel altruistic, it's because in a free market unadjusted prices create an arbitrage. If your salary is not adjusted, you go work somewhere else. Your unadjusted salary is some businessmen's opportunity to have you at no extra real terms cost(normally they would have offered you more of what you ear currently, now they can transfer you by simply giving you a fair market salary).
You missed the part about the economy doing fine. Anyway, salaries don’t stay static because people are not static - they age and get seniority, change jobs, get promoted, get redundant because technology and market changes etc.
It’s probably not the inflation that is eating in the wages in many cases. A lot of wages moved from established professions to software developers or moved from deindustrializing countries to China and so on. %1-%2 inflation is a noise regarding to changes in salaries. My grandfathers income from his profession did not perish due to the inflation but because of the proliferation of sneakers and cultural change that made sporty shoes acceptable in workplaces.
> When there's a steep inflation, be it anything from Turkey level to Venezuela level inflation, your salary gets adjusted to sustain your lifestyle
Only at the lowest levels, where it has no relation to economics anyway: most governments will work to ensure that poor who have nothing to lose will not be pushed into long-term hunger; if they do, they revolt. So either the costs of the food and barebones medical care (broken bones, etc.) will be subsidized for them or the money will be bumped up.
There is a second group where this adjustment is likely to happen: Army and government workers. If you starve those, you quickly feel it. Everyone else gets to fend for themselves and is usually much, much worse off. I have also lived in a country going through hyperinflation and unless one is in a select group (likely linked to organized crime) one definitely does not get salary adjusted to sustain the lifestyle. In fact, the lifestyle one had usually crumbles. My 2c.
You are right but probably in your case there's a second component: Economy crumbling due to political instability or something of that sort.
Extreme inflation is not the same as the inflation we see in the western countries, it is usually accompanied with some turmoil therefore the salaries do get adjusted but they get adjusted beneath the inflation as the economy gets smaller. Once the stability is achieved, you can end up with an order of magnitude higher inflation that the rich western countries but have noticeable increase from year to year in terns of quality of life and access to import goods.
Probably my claims don't cover any case of hyperinflation because that always comes with other problems too, therefore you probably don't have a healthy economy in hyperinflation.
Let me tell you how poor's life looks like when things are alright: You have a job that is good enough to cover your rent, your food, your bills and the instalments of your phone and computer and you might put aside a little bit that at some time in the future you might use to pay the downpayment of an apartment or a car.
When there's a steep inflation, be it anything from Turkey level to Venezuela level inflation, your salary gets adjusted to sustain your lifestyle and you put your money in Gold/USD/EUR/GBP/AnythingMoreStable or property.
That's it. Poor don't get any poorer just because of inflation. If anything, if the inflation has accelerated the disposable amount of your salary increases in real terms since your loan payments remain the same most of the time. The lender usually incorporates this into the rates but every now and then the inflation can be beyond the expected and you may end up paying much less in real terms.
When the things are not alright, the inflation is irrelevant to you. Whatever little you have, you are going to spend it before any meaningful impact due inflation. Next time you get money, you will get more to match the increase in the prices.
How do I know? I have been there. I've seen an inflation where you cannot predict the price of the bread tomorrow and I have seen a stable inflation where you simply incorporate it into your calculation and you are fine. I've lived in 2 two countries that dropped 0's from their currency, one dropped 000, the other dropped 000,000.
The inflation bites when it is unstable and unpredictable. Then businesses cannot incorporate the inflation into their cash flow and the economy slows down due to risk and difficulties of doing business. That's when the poor are impacted hard because that's when they loose jobs and switch to "things are not alright" mode.