Why YOU want your interest rates to go up

Why YOU want your interest rates to go up

Throughout the 80’s and 90’s we had a cultural epiphany on television. There were shows on television that were well written and produced. The Cosby Show dealt with issues that faced the African American community at the time. Miami Vice glamourized Miami, but also exposed a growing drug trafficking culture. Married with Children showed the disillusion of the everyman in a satirized way. Then MTV had to go along and ruin it with the Real World (which ceased to be anything real after RW: San Francisco). MTV discovered it could create drama without a script, hire cast for a pittance if not for free, and decrease the production costs. After years and years of Big Brother, Survivor, the Kardashians, and the Real World, man cannot survive on reality TV alone. You would have never thought of saying the 80’s and 90’s were the good ol’ days.

There is something else that I really wish would come back from the 80’s. No, it’s not Dan Aykroyd or leggings. It’s interest rates. The American people as a whole have woken up to the economic reality of today. Living outside of your means is no longer feasible. People are saving more . The irony of it all is that interest rates on a variety of different savings accounts is minimal if in existence at all. That kind of action only seems to inspire frivolous spending and “chasing” yield with riskier investments. The party line from those advocating a low rate policy is, “We are trying to stimulate investment.” I think the appropriate retort would be, “ If the investment was going to come, it would be here already.” Another common defense is, “We need to bring lending rates down to support housing.” If somebody is going to buy a house, they are going to have 15% or 20% now anyways. The economy is changing and the hope should be that we are changing from a consumer economy to a production economy.

The Fed, with its low interest rate policy, has “put out the fire.” Lifting interest rates would follow the natural mental progression of investors and consumers alike who will say, “Okay, things are returning to normal.” Whether or not it’s actually true, or if it’s only the placebo effect – who cares, as long as the patient gets better and confidence is restored?

Twelve years into a new century, TV execs are taking some risks and putting quality back on TV – shows like LOST, Modern Family, 24, and The Office. I’m not sure what Jack Bauer or Michael Scott would do to fix the economy, but hopefully it wouldn’t be the same thing over and over. Well, okay… Michael might.