Skyrocketing interest rates to combat xidenflation has made borrowing money expensive
You must be talking about someone else , I am an Independent. But I do support the Democrats , they are a lot more decent. One of the first things I heard on here was republicans on.he4 plotting how they're going to corrupt the Supreme Court even more by appointing yet another far-right extremist to the court.
Borrowing does get more expensive, but business expansion should be less based on borrowing than on profit.
The Fed kept interest rates up to combat inflation. Now that inflation has been tamed they are dropping those rates
No longer skyrocketing , almost normalized.
Almos…but the damage over the past four years is what it is. We must never forget and never allow those policies back in power
Yes, like I said skyrocketing interest rates make borrowing expensive. Not deflation
Do you understand that moderate inflation is what makes being a home owner possible?
How so?
Short term increases in interest rates to bring inflation down is far less of a concern than deflation
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Obviously you don’t own a home. Go ask a friend if his mortgage is more affordable 15 years on than it was when he first bought the house
Higher wages , higher costs never seem to occur without inflation. Seems like both ng changes. Where I used to work out wages were more or less frozen for many years. Now everyone is making about 150% more than we were and no I be is happy. Guess it's true , Money can't buy happiness. Most notable example , Look how miserable trump is most of the time.
Tell that to the family having to max out their credit cards in order to simply meet their basic human needs over the past four years due to harris and xiden driving up the cost of groceries 25.8 percentShort term increases in interest rates to bring inflation down is far less of a concern than deflation
The Dangers of Deflation
We look at what life would be like in a deflationary environment, and what you can do to protect your investments.www.investopedia.com
I do own a home. I have friends that own homes
That's assuming that home ownership should continue to be unsustainably propped up by government. The inflation we've seen in the last few years with real estate was due to a combination of low supply, equity companies buying properties, and government buying up bad loans. A much more sustainable model for this market would involve ending the practice of government buying bad 30 year mortgages and giving banks fewer assurances (as in not bailing them out).
We don't measure inflation very accurately anymore. The definition was somewhat watered down as far back as the 80s. It's become a largely political stat, much like unemployment rate. The real inflation rate is easier to perceive if you just look at things like home prices and food. We're nowhere near back to normal, and while the Fed has tried to tame inflation, they are dealing with the reality that keeping rates artificially low throughout the 2000s and much of the 2010s made business too dependent on borrowing. We may be headed for a true currency crisis, even if the Fed raises rates again.
On what basis do you make those claims?
Wages grew pretty quickly in the 50s without significant inflation. There are many factors as to why wages have stalled. One of the earliest ones was women entering the workforce. When you double the labor market without doubling jobs, competition among labor results in companies paying less. Women were also more willing to work for less initially. Fast forward a few decades, and outsourcing also had this effect on wages. Nowadays, illegal labor also affects wages in lower skill jobs.
Wait. You want less home ownership?
