American fixed 30y mortgages actually make interest rate policy much less effective, in theory.

In most countries with normal mortgages, raising rates fairly immediately transmits through to the rest of the economy, because it affects the mortgage market. This isn't true in America, because everyone quite reasonably is able to get these insane mortgage products with literally no downside risk - if rates go up, you don't pay more. If they go down, you refinance at minimal cost.

Agree to disagree on the tax issue. The way you've framed it is fairly inflammatory, but happy to have a discussion about it. The reality is that as much money as rich people have, the middle class have a whole lot more. Every country with large government spending has broad, high taxes on the entire population, not just the rich.

This is not uniquely American. Here in the Netherlands we also have fixed interest rates for long periods. Usually for 20 years.

So you don't buy the POV the middle class is squeezed out of existence, almost?