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at a higher interest rate, there'd be less "easy" money to be made. levered capital would only be used when there was more value add than "sell cold in hot" (this is y the iced water venture is usually bootstrapped by individuals, it makes no sense to lever capital for it)

so over time the economic system fills with "zombie" activities that destroy more value than they create as the effects of inflation start manifesting (even though in the short term right after the moment of borrowing it was profitable for a bit)

thus artificially low interest rates are similar to babying someone with a victim mentality. giving them an A for D work via grade inflation over time the individual becomes more and more useless relative to the ones that get slapped for whining

this is not to say that slapping everyone is a silver bullet. there *are* victims and there is a certain beauty in taking care of the disabled / handicapped / autistic / etc.. but the frosting goes over the cake not the other way aroundhttps://twitter.com/a_yawning_cat/status/1359955811619860481 …

with grade inflation. the student who masters 100% of the material and gets an A is indistinguishable from one who gets 20% of the material and gets an A as well with currency inflation the ceo with 100M in funding is indistinguishable from the idiot with 100M

so bitcoin, as an "anti inflation" asset (assuming it is globally adopted) fixes a similar problem with grade inflation. it forcibly (through math) prevents the coddling that inflates away the difference between superior/inferior domain skills

HOWEVER there is a danger here in that it is effective at this discernment only in domains that can CAPTURE excess value into economic tokens it doesn't fix the problem with ONLY monetizable skills being valued by the world