this post was submitted on 15 Apr 2026
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Low interest rates are good for people who have money already. If I had money, the bank will give me a lot of money to buy something, say some apartment buildings or a piece of land for development. Since the cost of borrowing is low, the cost of accumulating the ownership of assets is low.
But the bank won’t give me millions to buy real estate at 1% interest because I don’t have millions already to put down and protect the bank if the investment takes a while to pan out. I would have to be wealthy before the rules say I can accumulate more wealth.
The cheaper the interest rates, the more ownership the wealthy can acquire.