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Progressives In Congress Need Another Hit Of Low Interest Rates

Artificially low interest rates lead to more of the same economic sickness-malinvestment, bloated government and personal debt, and a never-ending cycle of boom and bust that enriches the political class while impoverishing the average American.

While focusing on today's slightly higher mortgage rates, progressives ignore what low interest rates do to home prices in the first place.

Artificially low rates increase home prices, and pushing rates near zero, as the Fed did in 2020, increases home prices substantially.

At a systemic level, unnaturally low interest rates distort asset prices.

Since asset prices are determined by future cash flows discounted by prevailing interest rates, excessively low interest rates inflate current values.

In an effort to wave away the ill effects of low interest rates and accompanying price inflation, progressives argue that worker wages have "Consistently outpaced inflation," but this is also false.

Progressives want low interest rates for the same reasons Republicans want them-to grease the skids for more asset bubbles and greater government spending that enriches them and their donors. 

https://mises.org/mises-wire/hair-dog-progressives-congress-need-another-hit-low-interest-rates 

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