The working class doesn't hold that much in cash, do they? Competition in the labour market means nominal wages go up when inflation goes up. Many working class people have mortgages (though I'm not sure whether they have fixed rate mortgages?)
Working class typically rely solely on wages and have little to no wealth. So any purchasing power decrease is often referred to as a hidden tax on wages.
> Working class typically rely solely on wages and have little to no wealth. So any purchasing power decrease is often referred to as a hidden tax on wages.
That's only true if wages are fixed. They typically aren't, especially when people move jobs.
Kevin Erdmann has some good writing about mortgages before and after the GFC.
