Quote:
Originally Posted by Bill Bumface
One positive that could come out of this is inflating away a lot of the massive consumer debt that is kicking around, assuming salaries keep pace with inflation.
In Alberta, where we have a disconnect with salaries vs. the economy, it also will be super helpful. When dealing with existing labour forces, getting decreases in pay is really really hard. Letting the world inflate past stagnant wages is much easier. This is a chance to get our public and private wages back in line with the rest of the country.
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Don't see this happening.
Most businesses are under a huge crunch right now, with many struggling to keep up with existing expenses.
As for increasing interest rates, that will most certainly not have a positive effect on personal debt. We'd just see more people defaulting.
The most likely outcome is the further widening gap between the wealthy and the poor. If you already own stuff, it's going to get more valuable. If you rely on your wages for wealth, you are SOL.