Uber Eats or something idk
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Your maths is not right. Inflation, in absolute terms, is a larger benefit to people with higher interest rates.
Let's consider the scenario where inflation is 10% for simplicity, and two borrowers who each borrow $100, but Borrower A at 5% annual simple interest and Borrower B at 25% annual simple interest. Both borrowers borrow the money at the beginning of Year 0.
Borrower A owes $105 in Year 1 dollars at the beginning of Year 1. This is equivalent to $95.45 in Year 0 dollars.
Borrower B owes $125 in Year 1 dollars at the beginning of Year 1. This is equivalent to $113.64 in Year 0 dollars.
Compared to a 0% inflation rate, Borrower A saved 9.55 Year 0 dollars and Borrower B saved 11.36 Year 0 dollars. Borrower B saved 1.81 more Year 0 dollars than Borrower B due to inflation (but paid 17.55 Year 0 dollars more overall because of interest).
Inflation, in absolute terms, is a larger benefit to people with higher interest rates.
Fair enough. I'm more thinking in a discrete sense... "saving money" versus "owing money"... rather than implicitly how much less are you paying.
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I'm a middle aged man. I've paid my mortgage. I've got savings. My pension is doing alright. I've got my shit together.
I still eat beans on toast more often than I get a takeaway. You don't need to send half your dinner money to the silicon valley cunts that are fucking everything up. Support your local food places by going in, that way they get all the money.
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We carry access to all the knowledge of the world in our pocket.
It is buried in trash.
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The costs of Doordash/Uber Eats gets socialized pretty heavily. Where I live, most restaurants just upped their prices 20-30% across the board to account for the DSP fees. Most of the time I'm ordering from Doordash, it's genuinely cheaper than actually eating in the restaurant
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What does that mean? Where I live you borrow a certain amount of money and you pay it back plus interest (in my case 3.5%), and that percentage is fixed for 20 years. In 20 years I expect to have paid most of that entire amount back and my house should be mortgage free
Yeah. He borrowed money for a house at 1.5%. Then inflation hit almost 10 during covid and our salary didn't fully cover this but was raised way more than 1.5%. Money lost value much faster than his debt increased, so the banks effectively lose money on him while his paycheck grows faster than his debt increases.
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Your maths is not right. Inflation, in absolute terms, is a larger benefit to people with higher interest rates.
Let's consider the scenario where inflation is 10% for simplicity, and two borrowers who each borrow $100, but Borrower A at 5% annual simple interest and Borrower B at 25% annual simple interest. Both borrowers borrow the money at the beginning of Year 0.
Borrower A owes $105 in Year 1 dollars at the beginning of Year 1. This is equivalent to $95.45 in Year 0 dollars.
Borrower B owes $125 in Year 1 dollars at the beginning of Year 1. This is equivalent to $113.64 in Year 0 dollars.
Compared to a 0% inflation rate, Borrower A saved 9.55 Year 0 dollars and Borrower B saved 11.36 Year 0 dollars. Borrower B saved 1.81 more Year 0 dollars than Borrower B due to inflation (but paid 17.55 Year 0 dollars more overall because of interest).
Actually its the inverse. Borrower A is borrowing the equivalent of $105 and borrower B is borrowing the equivalent of $125 and after 5 years the amount they borrowed is equivalent to $160.
Let's put this into more real terms. Lets say 30 years ago borrower C got a $100k mortgage at a 6% interest rate. Ignoring everything else that often gets lumped into "the house payment" (insurance, property taxes, HOA/condo association fees, closing fees, etc.) their monthly mortgage payment would be $599.55 for the entire lifetime of that mortgage. That $100k in 1995 dollars that was borrowed would be about $210k when adjusted for inflation. Those 360 payments would also conveniently equal out to roughly $215k meaning they effectively were loaned the money for free over the timescale, and that loan payment of $600 in 1995 is still a loan payment of $600 in 2025 despite the fact that that $600 in 1995 dollars is equivalent to about $1200 today.
Basically with inflation, property ownership ensures a roughly decreasing cost of living over a lifetime and property has a tendency to gain value faster than a dollar does, so ultimately being able to get a mortgage creates wealth for the individual by stabilizing costs that would otherwise grow indefinitely and they gain an asset that generally increases in value.
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I notice that learning to cook is never an option
Vegan, here. If I didn't cook, I wouldn't eat.
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New startup: BusGrub.
You put in an order for what you want and pick a timeslot a few hours in the future. E.g. for dinner, you put your order in at like at like noon and pick a 5-7pm window. Then, approaching your scheduled slot, a bus goes all around the area, picking up every order for that slot in the area, then swings around to each drop-off over the course of like two hours.
Result: Everyone enjoys cheaper, but gross soggy food.
Please give me $20 mil starting capital, thanks.
This is like a food truck with extra steps.
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It is buried in trash.
Okay, you're.....
...not wrong
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Actually its the inverse. Borrower A is borrowing the equivalent of $105 and borrower B is borrowing the equivalent of $125 and after 5 years the amount they borrowed is equivalent to $160.
Let's put this into more real terms. Lets say 30 years ago borrower C got a $100k mortgage at a 6% interest rate. Ignoring everything else that often gets lumped into "the house payment" (insurance, property taxes, HOA/condo association fees, closing fees, etc.) their monthly mortgage payment would be $599.55 for the entire lifetime of that mortgage. That $100k in 1995 dollars that was borrowed would be about $210k when adjusted for inflation. Those 360 payments would also conveniently equal out to roughly $215k meaning they effectively were loaned the money for free over the timescale, and that loan payment of $600 in 1995 is still a loan payment of $600 in 2025 despite the fact that that $600 in 1995 dollars is equivalent to about $1200 today.
Basically with inflation, property ownership ensures a roughly decreasing cost of living over a lifetime and property has a tendency to gain value faster than a dollar does, so ultimately being able to get a mortgage creates wealth for the individual by stabilizing costs that would otherwise grow indefinitely and they gain an asset that generally increases in value.
I'm a bit confused by what you're trying to say here. It seems non sequitur if you are trying to say "borrowers of higher interest rate benefit less from inflation".
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The costs of Doordash/Uber Eats gets socialized pretty heavily. Where I live, most restaurants just upped their prices 20-30% across the board to account for the DSP fees. Most of the time I'm ordering from Doordash, it's genuinely cheaper than actually eating in the restaurant
That's strange. Where I live, Doordash and all the other delivery services list higher menu prices than what you'll see at whichever restaurant you go to. If a menu item is normally $15, Doordash will list it as $18. This is before they even add the service fees.
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Boomer meme
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The costs of Doordash/Uber Eats gets socialized pretty heavily. Where I live, most restaurants just upped their prices 20-30% across the board to account for the DSP fees. Most of the time I'm ordering from Doordash, it's genuinely cheaper than actually eating in the restaurant
Yup, I just jump from deal to deal and have Dashpass. Ends up being almost the same price as getting it myself.
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I'm a bit confused by what you're trying to say here. It seems non sequitur if you are trying to say "borrowers of higher interest rate benefit less from inflation".
I wasn't the one who said that part. I just wanted to correct the simplified math with some real world numbers that put into perspective how much wealth just being able to get a mortgage sets one up for
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I wasn't the one who said that part. I just wanted to correct the simplified math with some real world numbers that put into perspective how much wealth just being able to get a mortgage sets one up for
So what did you mean when you began your comment with "actually it's the inverse"? Inverse of what?
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This is like a food truck with extra steps.
wrote on last edited by [email protected]Shhhh, I'm a Silicon Valley genius and deserve millions in venture capital. Call me Elizabus Holmes.
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I'm so happy to have grown up in a country where not learning to cook isn't an option.
I’m also from the US!
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That's strange. Where I live, Doordash and all the other delivery services list higher menu prices than what you'll see at whichever restaurant you go to. If a menu item is normally $15, Doordash will list it as $18. This is before they even add the service fees.
I think that’s probably everywhere. They passed a delivery service fee limit law here and parasites like DoorDash literally just whined about it in the app and added some additional fee right there.
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I'm a middle aged man. I've paid my mortgage. I've got savings. My pension is doing alright. I've got my shit together.
I still eat beans on toast more often than I get a takeaway. You don't need to send half your dinner money to the silicon valley cunts that are fucking everything up. Support your local food places by going in, that way they get all the money.
This cost me 1.80USD. Turns out if the government works to keep food prices low and gets rent down to 300-400/mo in the middle of major cities, 1 person running a small busibess can feed a lot of people cheaply.
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I notice that learning to cook is never an option
buying groceries is also more expensive than it should be. you also have to take the time to go do that, and if you don't have a car youre not likely to be getting very much stuff. then, you have to prepare the food, cook the food, and clean up after. i dont know about you, but my prep space, cooking space, and cleaning space are all the same small counter. im perfectly capable of cooking a meal, but I also hate cooking and don't enjoy it, for all the reasons i just said.
