Comment Re:Short-Lived? (Score 1) 778
Which is actually a good thing for the state in question. People's incomes are divided up proportionally typically between shelter, living costs, and savings. That is, a low income family will generally spend 50% of their income of shelter, and 50% on living. A middle income will typically spend 33% of their income on shelter, 33% on living, and 33% will be saved etc. This is independent of the actual absolute wage they get, as you rightly say.
The key though is that that 33% saved by the middle income family will be a larger absolute amount, which will give them more opportunity to move to lower average income areas in later life, and have a higher quality of life.
It is in a state's interest to have high inflation, as long as it's not extreme. Inflation is what makes that state's citizens better off than the neighbouring one.