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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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 reduces the real buying power of the money used to repay the loan by the inflation rate each year, regardless of your loan interest.
In absolute terms, inflation is better the higher your interest rate is, because the number of dollars it saves you goes up.
NateNate60@lemmy.worldtoMicroblog Memes@lemmy.world•The great millennial garbage gyreEnglish8·3 days agoSomeone tried this with a dating app for right-wingers only called “The Right Stuff”, which has faced significant criticism for lacking female users.
Is it unfathomable that someone could see something they think is wrong but doesn’t think starting a long-winded Internet argument wherein neither party will in any scenario whatsoever convince the other of anything is worth their time?
The Republicans tried doing a similar thing to the Democratic Party by calling it the “Democrat Party”, but members of the Democratic Party basically just ignored this and treated those who used it as stupid, or offered “helpful corrections” to the user’s “inadvertent mistake”. Eventually, it lost currency because it failed in its goal of upsetting people.
NateNate60@lemmy.worldto News@lemmy.world•About 1 in 4 U.S. adults worry they or someone close to them could be deported6·6 days agoIn the US, what’s more likely is that they find some random accusation to pin on you Abrego Garcia-style and then just keep you in the legal system gauntlet by adding new charges as soon as the timer runs out for trial on the old ones.
NateNate60@lemmy.worldto News@lemmy.world•Buy Now, Pay Later loans will factor in to Americans’ credit scores21·10 days agoThe “some registry” they put you in is probably made up. Credit reporting agencies don’t just accept claims of debt or delinquent accounts from any random person who claims to be a debt collector. In many cases, if it isn’t coming from a financial institution, they will need to see a court judgement before entering it on your credit report.
NateNate60@lemmy.worldto News@lemmy.world•Buy Now, Pay Later loans will factor in to Americans’ credit scores333·11 days agoShocker: financial institutions want to know whether you have a good record of paying people back before deciding to lend you money
NateNate60@lemmy.worldto politics @lemmy.world•NY Times cited 29 times to justify decision limiting trans healthcare43·11 days agoImportant distinction: it was cited 29 times [by non-parties to the case who filed amicus briefs carrying no legal weight].
It was not cited 29 times in the actual ruling.
NateNate60@lemmy.worldto News@lemmy.world•Florida to receive federal funds to build immigration detention sites, including "Alligator Alcatraz," Noem says23·11 days agoFantastic, when does she plan to move in?
This meme reminded me to turn on my alarm. I turned it off last Wednesday for Juneteenth and the Monday and Friday alarms are separate (less road congestion, can wake up later). So if not for this, I would have overslept tomorrow morning
NateNate60@lemmy.worldto science@lemmy.world•Glass bottles found to contain more microplastics than plastic bottlesEnglish32·11 days agoWhich is easier? Squatting down to count how many caps say “Coca-Cola” or counting the number of bottles with red caps?
NateNate60@lemmy.worldto science@lemmy.world•Glass bottles found to contain more microplastics than plastic bottlesEnglish9·11 days agoThere is a real reason that the caps are painted. Glass beverage bottles are usually stored in a crate and grabbed from the top, so the design on the lid is what restaurant or store employees used to distinguish what drink is contained within it. This allows employees to distinguish similar-coloured drinks (e.g. Coca-Cola vs Pepsi or two different brands of beer) just from looking down at the top of the bottle.
But there probably is a way to paint them without using plastics
NateNate60@lemmy.worldto Progressive Politics@lemmy.world•Shocking poll shows Zohran Mamdani overtaking Andrew Cuomo in NYC’s ranked choice primary6·12 days agoSomething can be both shocking and uplifting, can it not? If I found out I won the lottery tomorrow then that would be both shocking and uplifting.
NateNate60@lemmy.worldto science@lemmy.world•Glass bottles found to contain more microplastics than plastic bottlesEnglish201·12 days agoParent commneter implies that people who consume soft drinks or alcohol aren’t concerned about their health because these beverages are not healthy
NateNate60@lemmy.worldto science@lemmy.world•Glass bottles found to contain more microplastics than plastic bottlesEnglish201·12 days agoOdd. I would have thought that the paint, being on the exterior, wouldn’t leak into the beverage contained inside the glass.
But apparently, they found that blowing air over the caps reduced the amount of detected contamination by 60 per cent. So it seems like an easy fix that manufacturers can implement inexpensively (literally just an electric fan)
NateNate60@lemmy.worldto politics @lemmy.world•Trump suggests farmers may get to keep undocumented workers after all15·14 days agoThis is a fantastic idea. The brilliance of the 47th president strikes again. Give them work permits, ensure they are paid a fair wage and the labour standards are adhered to, and it will guarantee that they become hardworking honest taxpayers who contribute to the American economy.
Wait, that is the plan… right?
Right…?
NateNate60@lemmy.worldto Enshittification@lemmy.world•Google fucked a whole generation with Chromebooks, and now they're fucking the next generation with AI7·14 days agoThe Chromebook does exactly what it says on the tin. It is a cheap notebook which runs Chrome. And it’s fairly competent at that task. It’s exactly as advertised. The problem only arises when people think that the ability to use a Chromebook is acceptable as a substitute for the ability to use a normal computer.
So what did you mean when you began your comment with “actually it’s the inverse”? Inverse of what?