4 ms·
Money is absolutely not a zero sum game. More is created e.g. by loans all the time. Wealthy people provide a lot of stability by either 1) putting money in ban
by ed312 8y ago
Money is absolutely not a zero sum game. More is created e.g. by loans all the time. Wealthy people provide a lot of stability by either 1) putting money in banks, which provides capital for loans and 2) investing in long-term ventures (which create "jobs").
- DATACOMMANDER 8y agoValue isn’t a zero-sum game. Disregarding inflation, money is. Fractional-reserve banking can only increase the money supply by a finite amount. I’m also puzzled by the notion that loans create new money.
- fwip 8y agoAgreed. I guess you can argue that loans put money back into circulation, but the obvious corollary is that rich people hoarding money effectively destroys it.
- monkeynotes 8y agoLoans just put debt into the economy, while the rich monopolize the credit.
- imtringued 8y agoThere is no limit in how many loans a central bank can give to regular banks because the central bank doesn't have to be backed by deposits, gold or any other scarce resource.