@olly91 can you explain to me how raising rates will increase the affordability of normal people?
all I can tell is
1) prices for services and products will stay flat or increase, no one is going to lower prices when money is now harder to obtain
2) home prices are mainly due to limited supply, raising rates wont impact this and immigration hasnt even started in full due to covid.
3) auto is just a supply constraint due to covid and semiconductor supply issues related to increase in demand and usage.
4) companies will lay off people, as they no longer have funding to keep paying paying massively overstaffed divisions (due to low interest debt not being available)
5) stock markets will do whatever, lets say they stay flat or down - people lose out on retirement
6) innovation comes to a stand still. not saying the world is allocating money properly towards humanities progression right now, but even less low interest money floating around means this will go down
7) social issues will take a back seat as there will be a real recession and devolution of human societys who have had it easy realtively for the past 2 decades.
8) meat, produce etc will still cost the same or more, as it still costs the same money to create (workers, resources, shipping etc)
9) taxes are more likely to increase, as goverments need to manage debt in stagnant economy.
i mean everyone is saying they want rates to go up to "lower" inflation, but i see zero bull cases for common people if rates go up. You will lose less actual money by adapting to a low interest world (which imo is here to stay anyways, it would be stupid to raise rates significantly, money is societal construct)