It’s so weird that the same people that talk about the plight of the poor and middle class talk also about the beneficial effects of just a wee touch of inflation – or at least the absence of any harmful effects.
I suppose they are assuming that wages and welfare would both be indexed to inflation. Thus the people that immediately suffer from the inflation are the savers, and, less directly, the great majority who do not see the beneficial effects of greater economic growth in the absence of inflation.
Really, it’s the middle that pays the most. The rich have inflation-indexed investments and the poor have inflation-indexed income.
