4 ms·

It worsens local economic conditions by directing local resources to unprofitable forms of work.

mannykannot 9y ago
I doubt the consequences are worse than those of not having a functional banking system.
frgtpsswrdlame 9y ago
But it doesn't direct local resource to unprofitable forms of work, it directs local resources to less profitable local forms of work rather than more profitable foreign forms of work. That seems like a perfectly reasonable trade-off for a community to make.
Lionsion 9y ago
> It worsens local economic conditions by directing local resources to unprofitable forms of work. That has to be one of the most myopic and heartless things I've read all week. You're not going to improve local economic conditions in American Samoa by sucking all the money out their economy, so it can be used to chase profit elsewhere, while its people sit around idle because you've judged whatever work they can do as "unprofitable." I advise you to put down whatever hyper-libertarian economic polemic you got your idea from and read something more humanistic.
- SamReidHughes 9y ago
  You're treating the economy like a perpetual motion machine.
  - Lionsion 9y ago
    You're just dropping slogans. Please reply substantially on why you seem to think communities like American Samoa would be better off if its people couldn't get bank loans.
    - SamReidHughes 9y ago
      I'd think it's obvious that they can't invest their money profitably if you don't let them do that.
      - Lionsion 9y ago
        >> lease reply substantially on why you seem to think communities like American Samoa would be better off if its people couldn't get bank loans. > I'd think it's obvious that they can't invest their money profitably if you don't let them do that. I don't think you're really wrapping your head around the situation. No one's saying they "can't invest their money profitably." What's being said is that it's better for their community if their community's money is deposited in a local bank that makes loans to the community, rather than an international bank that won't (and perhaps pay slightly more in interest). If you're having trouble wrapping your head around terms like "better for their community," you may have an easier time if you roughly translate it to "more profitable for their community."
        SamReidHughes 9y ago
        You're confusing putting money in motion with actual production. If people don't invest locally, wages will fall until they've fallen enough that it's profitable to invest locally. There's no scenario in which investment dries up. Now, in order for economic health, the investments made have to be put towards doing useful things. Ideally, very useful things. (Edit: Notably, you can't invest locally if you don't have any profits to invest.)
        dnomad 9y ago
        Difficult to understand how people can still think like this. This is complete nonsense. Look around. The USA and Europe are littered with economic ghost towns where the disappearance of factories and industry sent the community into an economic death spiral from which they won't ever recover. Simplistic models like this have no bearing on the real world.
empath75 9y ago
You should probably google ‘comparative advantage’
eecc 9y ago
Nope, not necessarily unprofitable. Sometimes it’s enouh to be _less profitable_ to be taken offline.

I doubt the consequences are worse than those of not having a functional banking system.

But it doesn't direct local resource to unprofitable forms of work, it directs local resources to less profitable local forms of work rather than more profitable foreign forms of work. That seems like a perfectly reasonable trade-off for a community to make.

Lionsion 9y ago

> It worsens local economic conditions by directing local resources to unprofitable forms of work. That has to be one of the most myopic and heartless things I've read all week. You're not going to improve local economic conditions in American Samoa by sucking all the money out their economy, so it can be used to chase profit elsewhere, while its people sit around idle because you've judged whatever work they can do as "unprofitable." I advise you to put down whatever hyper-libertarian economic polemic you got your idea from and read something more humanistic.

SamReidHughes 9y ago
You're treating the economy like a perpetual motion machine.
- Lionsion 9y ago
  You're just dropping slogans. Please reply substantially on why you seem to think communities like American Samoa would be better off if its people couldn't get bank loans.
  - SamReidHughes 9y ago
    I'd think it's obvious that they can't invest their money profitably if you don't let them do that.
    - Lionsion 9y ago
      >> lease reply substantially on why you seem to think communities like American Samoa would be better off if its people couldn't get bank loans. > I'd think it's obvious that they can't invest their money profitably if you don't let them do that. I don't think you're really wrapping your head around the situation. No one's saying they "can't invest their money profitably." What's being said is that it's better for their community if their community's money is deposited in a local bank that makes loans to the community, rather than an international bank that won't (and perhaps pay slightly more in interest). If you're having trouble wrapping your head around terms like "better for their community," you may have an easier time if you roughly translate it to "more profitable for their community."
      - SamReidHughes 9y ago
        You're confusing putting money in motion with actual production. If people don't invest locally, wages will fall until they've fallen enough that it's profitable to invest locally. There's no scenario in which investment dries up. Now, in order for economic health, the investments made have to be put towards doing useful things. Ideally, very useful things. (Edit: Notably, you can't invest locally if you don't have any profits to invest.)
        dnomad 9y ago
        Difficult to understand how people can still think like this. This is complete nonsense. Look around. The USA and Europe are littered with economic ghost towns where the disappearance of factories and industry sent the community into an economic death spiral from which they won't ever recover. Simplistic models like this have no bearing on the real world.

empath75 9y ago

You should probably google ‘comparative advantage’

eecc 9y ago

Nope, not necessarily unprofitable. Sometimes it’s enouh to be _less profitable_ to be taken offline.