Well, higher interest rates mean higher profits for those with capital to invest, and it means lower wages for workers. So I think that’s the primary reason it is an appealing lever for the people that make these decisions.
Higher interest rates also hurt small businesses, like, say, independant grocery stores, but don’t really hurt the entrenched mega-corporations. And the economic decision makers in Canada have communicated pretty clearly that they view the “efficiencies” created by monopolistic markets to be a desirable thing as well. So they can keep wages down, increase financial profits, and knock independent businesses out of the market to reduce pesky competition while telling us and themselves that it’s actually a necessary and responsible response to inflation.
Well, higher interest rates mean higher profits for those with capital to invest, and it means lower wages for workers. So I think that’s the primary reason it is an appealing lever for the people that make these decisions.
Higher interest rates also hurt small businesses, like, say, independant grocery stores, but don’t really hurt the entrenched mega-corporations. And the economic decision makers in Canada have communicated pretty clearly that they view the “efficiencies” created by monopolistic markets to be a desirable thing as well. So they can keep wages down, increase financial profits, and knock independent businesses out of the market to reduce pesky competition while telling us and themselves that it’s actually a necessary and responsible response to inflation.