I am glad you would love that capeman. By the way… gather a couple of friends then pick one of them. Because that friend would be the one losing his job. Also find a couple more friends who want to borrow some money to start a small business. The tell them that they most likely will pay interest rates that will crush their business plan.
So once again, what you may wish for may happen… just make sure you have an understanding about the basic economic engine of how things work because alot more things get affected in an interest rate environment hovering in this double digit strata other then housing.
The amount of contraction is something people who were not around in the late 70s or early 80s just do not think about.
SD Realtor
I can understand your argument and I can tell you I know more about the economics of a high interest rate economy than you think. My home in the 80s included a single mom working in the SD defense industry where she married my stepfather who also worked in defense. She was laid off no less than 30% of that decade with at least 8 jobs. Luckily my stepfather was only hit once or twice with the unemployment. What the environment did do is challenge them to advance their working skills to become more flexible to the economic environment and in the end made them more successful. I would say through the process our family felt a lot of hardship.
I'm not one to gloat over others financial hardships but the effect of a high interest economy does put people into check on what they should have as working skills and would put a stop to the unnecessary wastefulness in business and personal lives. I wouldn't blame the interest rates for what happened to areas such as Flint, MI in the auto industry. That was the fault of poor business models and the workers got caught in it. That is the same for the defense industry in the 80s. In the end those poor workers laid off needed to adapt and embolden themselves to not be reliant on only one employable skillset. High interest environments keep the people honest and flexible and do away with unneeded business models. Working in one of the most volatile industries there is (biotech) I am well aware that my value is created by having diverse skillsets and being flexible to change my working environment. That is something through adversity that has made me strong like my parents and able to capitalize on adverse environments.
