I am surrounded by boomers saying this that in their day interest rates were at 15% and we have it easy! I’m also surrounded by the younger generations saying this is ‘not the same thing’
Explain to me the reasoning…
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The fear was that people and companies had to much variable debt. Debt is good for growth when it’s cheap (low interest rates) and bad for growth when it’s expensive(high interest rates). So if everyone had to start paying more towards their debt it would take away from stimulating the economy and leading to some businesses to go bankrupt. This would continue until we were in a recession. The good news so far is that the economy hasn’t broke yet so we may see high interest rates for a long time.
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