What is important is how much debt you have that cost you less than inflation.
Governments and wealthy individuals have tons of 2% interest (or less) debt. Inflation at 4% erodes that debt pretty fast.
The poor and middleclass have debt at 10-30% and inflation at 4% is doing not much to erode it.
That's not true. Regardless of the interest rate, all loans' principle is inflated at the same rate. You can argue that the poor are more likely to have their principle grow due to underpayment, but that's a separate point.
You say that but if your debt is on credit cards at 20%, believe me, you don’t feel like inflation is your best friend. If you’re the government, it’s a very different scenario.
Whats your idea of underpayment? If a student loan takes 20 years to pay off at allowed monthly payments, that's not underpayment, but lord that is a weight on your neck.
