Estimated reading time: 3 minutes
Interest rates are climbing faster than my blood pressure during a political debate. Yep, we’re talking about the government jacking up interest rates, because apparently, they think our economy needs a good old-fashioned shock therapy. But let me tell you, the only shock here is how blatantly this hurts everyone not sitting on a pile of cash.
Inflation? More Like Infla-torture!
I don’t know who needs to hear this, but inflation isn’t just about your morning coffee costing more than a kidney on the black market. It’s about our money buying less, and somehow, we’re supposed to keep grinning and bearing it? Please, my face has limited elasticity.
And now, higher interest rates? It’s like giving medicine to the dead! Higher interest rates make borrowing costlier. That means businesses scale back, they hire fewer people, and the next thing you know, your job’s as secure as a snowman in July.
Debt: The Gift That Keeps on Giving
And speaking of job security, let’s chat about government debt. It’s like an all-you-can-eat buffet, only what they’re serving is more debt, piled onto your plate whether you like it or not. Now, with higher rates, the cost of handling this debt makes dieting look easy.
Governments roll over old debt at higher interest rates, and suddenly, they’re trying to save money by cutting public services. So, what’s vanishing faster than my will to live during an election year? Well, everything from public schooling to healthcare.
Don’t Look Up – The Economic Constipation
This situation is like a bad joke without a punchline. The economy needs movement, right? Needs a little momentum. But what high interest rates do is basically shove a giant cork in the works. Think of it as economic constipation. The flow stops, and all the stuff that should be moving through the system just… doesn’t.
What’s the Alternative? Cry in a Corner?
So, what are we common folks supposed to do? Invest? In this economy? Who has that kind of money lying around? We’re scraping to keep up with the rising costs of living. And saving—ha! What’s that? Something from a fairy tale, right?
It feels like we’re expected to find gold in our backyard to keep up. Meanwhile, the rich just keep buying more yachts, probably naming them something ridiculous like “The Inflation Crusher”.
Conclusion: We’re Not Laughing
I’m telling you, higher interest rates might look like a solid plan on paper, but in reality, it’s about as useful as a chocolate teapot. It makes the rich richer and the rest of us? Well, we get the joy of huddling in the corner, watching our wallets implode.
So next time someone says, “higher interest rates are good for controlling inflation,” I’ll be here, ready to hand them a lollipop for the road, because clearly, they’re living in a fantasy land, and everyone loves a good treat in la-la land.
Source: Higher interest rates make government debt unviable as an economic solution | Kenneth Rogoff
