I am finding it incredibly difficult to write this article about how rising interest rates, soaring prices in almost all normal everyday sectors, without a corresponding increase in wages / income to balance off this increase in interest rates, are affecting people.

This difficulty is because emotions seem to creep in every nook, corner, gap or space it can find. However, the famous statement, “Keep emotions out, we are to win! (at all cost?)”, comes to mind.

The wealthy continue their pursuit of lavish lifestyles, giving the government and national banking officials of the day, the idea that everyone has money, including those that don’t have the money. In reality, those that don’t have the money, actually don’t have the money.

In order for these everyday people to continue to make ends meet; they will dip into whatever savings they have or worse, use credit instruments like loans and credit cards; to do so. The wealthy – is hardly dented by this.

The government and national banking officials of the day should work with a top down approach to mop up cash liquidity from the market. Those who fly around in private jets; live on luxury yachts and drive around in luxury cars, wear expensive clothes – the opulent lifestyles; they should have their liquidity mopped up first.

I do not have anything against the rich and their lifestyles, they should continue the way they live. However, they have to take a responsible approach befitting their image.

If a 25 basis points hike in interest rates would cause a household to have $100 dollars less in their spending power; then the wealthy should have a corresponding effect in percentage to their household earnings, too. Does it work that way? It would be amateurish to believe so.

The financial market has a basic principle. Someone gains on an another’s losses. “Why should this be so?”, you may ask. A good question. What is this “basic principle” founded on? You will hear a common term “market forces”.

What are “Market Forces”? It is the economic factors affecting the price of, demand for, and availability of a commodity. (1)

Again, this question needs to be asked, What is this “basic principle” founded on? “Market forces” as an answer is not going to the core of the meaning. Anyone wants to chance a guess?

This “basic principle” has to change. The idea of where when one side wins, while the other side loses, is outdated. For this change to happen, we would need the whole world to come to an agreement like for instance when they came to an agreement that when the sun comes up, it is daytime; and when it goes down, it is night. The idea for change may seem lofty, and those with vested interests may / will not want to reposition themselves if it means they have to give up something to create a level playing field.

This is not the first time and it won’t be the last, to hope for a change. For now, people will have to cut back their spending even further, to make up for the loss that the interest hike has caused them. Homecooked meals instead of eating out is a great way to cut down on overall expenses. Plan your road travel journey, using the best possible routes. Be on the road when it is relatively free of traffic – you save more on fuel. These are among the many ways of reducing your monthly overall expenditure. As the trending American term goes: “You got this!”

NOTES
1. Oxford Languages