And they're also good for people who don't own very much. You'll never convince me higher interest ratees aren't a good thing. What you could convince me of is ending the fed and letting the market set interest rates.
The reason the 90s middle class existed was because of the cooldown of the interest rates since the 70s. That was really the golden era of affordability versus labor wages in modern America. Until labor wages actually outpace inflation consistently again then no amount of interest rate hikes will fix market conditions.
Labor wages won't outpace inflation when the money supply keeps getting pumped up thanks to low interest rates. Raise the rates and wage growth will start to outpace inflation again.
Again you’re making an argument recent history refutes. Wage growth was the best when interest rates were lowering from the mid 80s to late 90s. Wage growth stagnated in the early 2000s. This was also when mass immigration had time to ramp up considerably and by the 2010s was in full momentum.
And they're also good for people who don't own very much. You'll never convince me higher interest ratees aren't a good thing. What you could convince me of is ending the fed and letting the market set interest rates.
The reason the 90s middle class existed was because of the cooldown of the interest rates since the 70s. That was really the golden era of affordability versus labor wages in modern America. Until labor wages actually outpace inflation consistently again then no amount of interest rate hikes will fix market conditions.
Labor wages won't outpace inflation when the money supply keeps getting pumped up thanks to low interest rates. Raise the rates and wage growth will start to outpace inflation again.
Again you’re making an argument recent history refutes. Wage growth was the best when interest rates were lowering from the mid 80s to late 90s. Wage growth stagnated in the early 2000s. This was also when mass immigration had time to ramp up considerably and by the 2010s was in full momentum.
After a period of high interest rates*
Not an american but I'd like to ask: Would bringing back production work back to US ease the situation?
Not unless the factories were mandated to have somewhere for the employees to live on site as part of their payment.