Interest Rate

Interest Rate
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Economy and money are human made and not a natural choice. So the outcome is based on the laws. There is no invisible hand to protect any down swing or prevent huge upswing (This is once again a misleading theory to hide the wrong games played by rich lobby). The Economy goes in cycles because of change in regulation. Usually in America the Republicans remove regulations and favor Business and the rich. So extremely rich Business men and rich CEOs do things to their favor (rather than in the interest of the company/industry or employment) such as increasing interest rate for credit loans (Banks), reduce workforce (So the CEOs can take more money to their pocket), increase prices (making reasons of supply and happenings elsewhere in the World that really does not have any impact etc). So unemployment goes high, interest rates go high, people are unable to meet needs which triggers a recession. On the other hand Democrats bring regulation to fix the problems and create public sector jobs and public sector investment, which brings a turn around and the economy picks up but unfortunately when people get money in their hands they forget the hardship and recession and get carried away by the alluring of making quick money and vote Republicans who in turn deregulate and after a few years the after effects triggers a recession. this is the cause of the Economic cycle; not by any invisible hand!

So what the government enacts is what we get (Similar to where there is a will there is a way; garbage in garbage out; in contradiction to what Bank lobby claims as interest rates are driven by inflation and vice-verse).
So it the interest rate for education loan is set to 1%, first time home purchase loans to 3%, all personal loans and credit card loans to less than 7% and mortgage period/duration not to exceed more than 15 years, the economy will be much stronger and people friendly
rather than having uncontrolled/unregulated interest rates that swing with uncertainty (and help increase CEO salaries ) between 9% and 29% and mortgage duration to 25 to 35 years which enslaves people to work for paying them instead of living a good life!


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-Suresh