As I understand it the idea is that raising interest rates makes cash "expensive" to incentive businesses to reduce immediate costs--lay people off. Hold on to

As I understand it the idea is that raising interest rates makes cash "expensive" to incentive businesses to reduce immediate costs--lay people off. Hold on to the value-holding assets (property), get rid of the immediate costly thing (primarily wages). More people looking for work means people willing to work for less. It's imprecise Likely people who are "easy to replace" get the axe first, but that doesn't mean others don't get affected as well.