Question

which group is less affected by inflation doctors borrowers or investers

Answer 1

Surging inflation would create a vicious cycle

After years stagnant wages and low-interest rates, fears of rising inflation have packed a wallop in recent weeks, shaking investors and igniting market volatility.

Economists point to a pair of budget bills on Capitol Hill as the root of the recent turmoil: GOP tax reform, signed in December, along with the more recent bipartisan compromise to avert a government shutdown, will add an estimated $1.8 trillion or more to the federal deficit over the next decade, according to budget experts. That number could climb significantly if Republican lawmakers fail to deliver on $338 billion in projected savings from their repeal of health-coverage mandates.

Business leaders worry that a tightening labor market, along with rising interest rates and higher capital costs, could wreak havoc on their bottom lines.

In “normal” inflationary cycles, industries counter higher costs by raising prices. Consumers, in turn, pay more for just about everything, from fuel and food to transportation and health care. Employees complete the vicious cycle by demanding higher salaries and better benefits to offset living expenses.

But if inflation surges as some predict, the impact on health care coverage costs will be especially severe. With American medicine’s unique reimbursement model, major inflation could yield devastating consequences.