I think this is the entire idea aimed at curbing inflation, right? If the government can't borrow money, they can't spend money. If they can't spend money, suppliers won't invest in upgrading their factories (or hiring more expensive programmers, or whatever). The companies that make factory upgrades won't be buying things. Workers anywhere in the value chain aren't going to get raises or bonuses, and thus won't be buying anything. Since they're not buying anything, companies that make those things won't be expanding. With too many things and not enough buyers, prices go down so the things can be gotten rid of. That all is the entire idea; in 2020, we panicked and gave everyone free money. They used it to bid up the price on everything. "I'm scared I might not be able to wipe my butt, so sure, I'll buy a $20 roll of toilet paper. It's not even real money that I worked for!" Now toilet paper costs $20. Because people valued their money less than they used to, the price of things they valued increased.

Now the Fed is trying to correct that effect, by making it hard to get money, so people value it more. By all accounts, it's worked. Inflation is under control, and outside of the software field, the economy is going great (even with two wars going on). People just aren't tripping over each other to bid up the price of anything and everything anymore. That's exactly the intended effect.

I definitely like it when everyone has free money. People can't make money by parking it in savings accounts, so they have to go out into the world and hire people to make them crazy stuff to sell. As someone who makes stuff, I think this great!

I think the author of this article feels the same way, but doesn't think it's a temporary correction, but rather the end of America as we know it. I doubt this is the end of America as we know it. Rather, we're just pumping the brakes on a bubble before the bubble pops. Eventually the government will want to buy stuff, people will loan them money at a lower rate, and the whole cycle begins anew. Note to self: next time, buy a house when rates are 2%.