We have forgotten the deeper reasons that certain things were prohibited or discouraged, assuming that these rules were only there because of a belief in a religion society doesn’t follow anymore. That was a naive view and it turns out that many “old” rules are actually pragmatic social codes disguised as beliefs. This isn’t limited to a particular tradition, either: pretty much every major religion has frowned upon things like gambling.
And so in the absence of any real coherent philosophy that aims to deal with complex problems like gambling, addiction, or excessive interest rates, you’re only going to get an expansion of what is already dominant: markets.
Don’t expect this to change until knowledge of ethics and philosophy becomes widespread enough to establish a new mental model for thinking about these issues.
Also, the deflationary effects of high interest rates are not because it causes unemployment, but because it reduced the rate of increase of the money supply.
Of course, lowered money is recessionary, which leads to unemployment which puts downward pressure on wages; but wages aren't the reason for inflation - the increase in monetary mass is.
This part I have small nitpick about:
> Also, the deflationary effects of high interest rates are not because it causes unemployment, but because it reduced the rate of increase of the money supply.