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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Because the people complaining now have **NO IDEA** how bad inflation got in the 1970s. This was back when union membership was four to five times as what it is today, and they had COLA contracts which pegged wages directly to inflation, so that every time prices rose, wages rose, which made prices shoot up. It was a crippling vicious cycle, and by 1980, inflation was at 14%, and the only way the Fed could stop it was by **HAMMERING** the economy with massive rate hikes. They all but put companies out of business by making the cost of borrowing beyond their reach, and by 1982, unemployment was at 10.8%, higher than it ever got during the Great Recession.
Listen, I’m not saying there aren’t people who have it bad now, but it’s not as bad as the 1970’s. The only difference is that people who were out of work and broke in the ’70’s couldn’t jump on social media to vent their anger.
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