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232: The Fed

Classical Stuff You Should Know

00:00

The Fed's Decision to Rake Interest Rates

The Federal Reserve doesn't want, don't want prices to go up because that can create all sorts of social problems. So what they do is they raise interest rates and that makes borrowing harder. That means that Megbee is not going to borrow as much money. But you do that for too long and then people aren't starting businesses. People aren't taking out loans. They're not buying tractors or cars. And that is eventually going to hit employment. If we didn't have any Dr. Pepper anymore, we could have inflation because people really want that Dr. Pepper.

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