Why do govts raise interest rates to slow the economy instead of tax rises?

Question

With interest rate rises, the people in the most debt suffer the most. With tax rises, the highest paid suffer the most, and the govt has extra revenue to help the ones struggling the most. This is never considered by any govt. Why not?

In: 1129

Answer 1

There’s a little more to it than that. Sure raising rates hurts people with adjustable rate loans, but most of the pain is felt through resulting layoffs.

As for why, rich people control the money and media and can therefore make or break politicians. Poor people cannot.