261
Tech market sell-off deepens amid fears over US inflation and AI debt
(www.theguardian.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 15 Oct 2026
261 points (98.9% liked)
Technology
88814 readers
6299 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related news or articles.
- Be excellent to each other!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
- Check for duplicates before posting, duplicates may be removed
- Accounts 7 days and younger will have their posts automatically removed.
Approved Bots
founded 3 years ago
MODERATORS
I'm an economics idiot. But doesn't general inflation reduce the burden of debt?
Significant inflation leads to increased interest rates and this makes it more expensive to take on new debt.
Or, if a country has high inflation and does not increase interest rates, this can lead to money flowing out of the country.
Inflation can also affect consumer spending, and therefore, selling of future products. Whether the effect is positive or negative could depend on how much consumer spending is debt-financed.
If your wages do not rise at the same rate as inflation, your debt burden does not shrink.
if you are the one owing money, yes; if you are the one who is supposed to receive money, it is not so great. i would assume the ones worrying about this are the ones who are supposed to be receiving money? i am also an economics idiot