Donald, you obviously have not shopped for groceries since Obama took office. And you need to know that housing prices in all desirable areas are now out of reach of middle class.
It is all the result of ARTIFICIALLY low interest rates forced on us by the FED.
...
You’re right, but the damage has already been done.
Putting rates artificially low to save the economy was a consequence of putting rates too high (relative to the markets and the yield curve) previously.
Continuing the Fed’s cycle of destruction will only make it worse.
It’s now time for wages and other earnings to inflate to catch up with housing and food prices.
Recessions and the Fed’s manipulations are inflationary in the long run.
Correct, ARTICIALLY low interest rates do act as stimulant to the economy for the SHORT DURATION.
It is same as ingesting caffeine with coffee, it stimulates for short period, then you end up more tired later because you have withdrawn a lot of body energy resources.
There is no free lunch. If low interest rates were good for the long term, every country would be prosperous for ever. Artificial low rates are easy to enact. It is easy to sell politically. Europe has much lower rates than us, their economy is stuck in mud and they have no more stimulant left for the economy. Japan has low rates, and they keep padding national debt for ever to avoid riots. Japan’s national debt is higher than United States based on population.
What it boils down to is that economic cycles will exist so long as economy exists. It works best if economy is left to work it’s own cycles. It always rebounds. Artificially low rates create temporary bubbles in hard assets and it is always followed by harder crash later.