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Wow, a mathematical explanation of how uncapped debt reduces wealth mobility.
by meric 9y ago
Wow, a mathematical explanation of how uncapped debt reduces wealth mobility.
- nandemo 9y agoYou're kidding, right? No way a generic observation about a markov chain (which doesn't even model interest) implies that "uncapped debt reduces wealth mobility".
- e12e 9y agoSo, with typical debt, interest rates are higher for debt than for savings. Does seem that a) removing the cap, and b) introducing interest on savings < debt would trap some people in poverty?