[battery_glasses]

I wouldn't say its the only way we know, rather its the only politically feasible move. Increasing taxes on the wealthy would arguably be a more effective way to take money out of the economy and wouldn't hurt non-wealthy people as bad, but good luck getting that through congress.

The only party that can act right now is the Fed, and the only move the Fed has in increasing interest rates.

[speakfreely]

The problem is that there's no proven good way to increase taxes on the wealthy. There's two flawed approaches: (1) increase income taxes, which doesn't tax the people who control the majority of the country's wealth, and (2) wealth taxes, which no country has ever figured out how to implement effectively.

[disgruntledphd2]

Property taxes are the only successful way we have of taxing wealth.