At the loan part, you’re confusing inflation and deflation. You need higher interest rates to counterbalance inflation because money loses value. Loans during deflation make the loan giver get richer by default. But TAKING a loan during deflation is a shit deal because the value of what you’re paying back keeps increasing. Inflation, assuming that it comes with gradual raises in income (which it theoretically should, just not in the modern US), actually makes your loans cheaper to pay back over time.
At the loan part, you’re confusing inflation and deflation. You need higher interest rates to counterbalance inflation because money loses value. Loans during deflation make the loan giver get richer by default. But TAKING a loan during deflation is a shit deal because the value of what you’re paying back keeps increasing. Inflation, assuming that it comes with gradual raises in income (which it theoretically should, just not in the modern US), actually makes your loans cheaper to pay back over time.