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?
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Because the interest rates are less abount people’s credit card debt, and more about banks lending to eachother and to businesses. Raising interest rates slows liquidity in the system, which slows loan growth and economic activity. Loan growth is the main way we have growth and inflation.
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