Sunday, September 19, 2010
Falling Rates Aid Debtors, but Hamper Savers
This article discusses interest rates in today's economy. These extremely low interest rates come with both positive and negative effects. The positives include households and corporations being able to refinance their loans and pay lower interest rates. This is to encourage businesses and households to borrow money. However, people with savings accounts are earning much less interest during these times. This has a major effect on retirees who are living off the interest that their savings earn.
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This article catches a lot of my attention. For one, I like the way that this sounds- that corporations will only be taxed once. This is a good this because cooperations can be very profitable, help UR numbers, and are good for the economy. Unfortunately how things work now, all cooperations are double taxed. Secondly, this strikes a lot of debate. Interest Rates are very low, and this is bad because this is not very encouraging for people to save.
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