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Ah, the magic of interest: http://www.threepanelsoul.com/comic/at-the-bank http://www.threepanelsoul.com/comic/at-the-bank
by teddyh 5y ago
Ah, the magic of interest: http://www.threepanelsoul.com/comic/at-the-bank http://www.threepanelsoul.com/comic/at-the-bank
- imtringued 5y agoWhy exactly do we want to reward already rich people at the expense of poorer people? Somehow, people convinced themselves that giving money to those who don't need it is efficient.
- randyrand 5y agoIt’s not that we want to. Its not our choice. It’s decided by the people, or the foreign countries, that have the money to lend. It’s the rate they are willing to lend at. Most don’t lend it for free.
- dlivingston 5y agoDo you understand why the system is set up the way it is? By which I mean the actual financial mechanisms.
- FabHK 5y agoIf everyone puts their money in the bank and gets 5% (say), then the proportion of wealth will remain unchanged. (FWIW, a similar argument against Proof of Stake (that it will inevitably lead to greater and greater inequality) is similarly flawed. (This doesn't mean that PoS is a good idea.))
- lottin 5y agoYou don't have to reward anyone. Just don't borrow. But if you want to borrow the lender will expect a reward. Simples.
- MisterSandman 5y agoIt's a lot easier for the rich to "just not borrow" that it is for the poor. Capitalism was designed so people HAVE to borrow money to do things, so saying that you can just avoid things by not borrowing is elitist at best. University, Medical Bills, Housing - all are things that many people (in NA at least) need to borrow money for. Borrowing money is an integral part to move up the social and economic ladder for most people alive today.
- infamouscow 5y agoBecause economists without even an undergraduate understanding of mathematics say the right things to those in power.
- teddyh 5y agoI assure you that the bank is making good money out of using that capital. Are you suggesting that it’s better that the bank keep all the profits rather than some of it going to the person lending the bank that money?