Part 7/11:
Inflation does not affect all demographics uniformly. It disproportionately burdens consumers and employees, while simultaneously benefiting asset owners and investors. Consumption becomes costly, particularly for those living paycheck to paycheck who depend solely on salary income. Historical data demonstrates that wages generally do not rise in tandem with inflation, worsening the financial plight for employees as consumer prices climb.
Over the past five years, the reported inflation rate has surged by 22%, while median household income has increased only by around 20%. In contrast, asset prices in the stock market have soared—showing an 80% gain during this same period. This illustrates the widening gap between wage earners and those who invest or own assets.