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A simple fact that deflates any finance wizard's claim that an economy can't succeed on "high" interest rates which are still substantially lower than in an era
by kevin_thibedeau 4y ago
A simple fact that deflates any finance wizard's claim that an economy can't succeed on "high" interest rates which are still substantially lower than in an era of significant growth. All it means is that they get a more equitable chunk of the pie rather than most of it.
- baby-yoda 4y agoPrevious high interest rate environments were accompanied by population growth and increases in labor productivity. I don't think there is any historical comparison to a high rate, no population/productivity growth scenario. I think at the very least those conditions won't provide for GDP increases but I also think capital re-allocation throughout the economy seems necessary to return to "healthy" growth conditions.