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Your comment assumes that like energy, money cannot be created or destroyed. Which is false. Anyone can create new money by talking a loan from the bank. Howev
by quickthrower2 4y ago
Your comment assumes that like energy, money cannot be created or destroyed. Which is false. Anyone can create new money by talking a loan from the bank.
However this point also helps your argument: When you borrow you pay interest to someone richer. In a sense a combination of whoever you sent the money to, and the bank.
- sin7 4y agoCan poor people take out a loan and create new money?
- loa_in_ 4y agoThey don't, and in times where there's most need for that, banks squeeze their wallet close even tighter.
- quickthrower2 4y agoMy understanding is any loan from a bank creates new money. However not sure about the types of loans that poor people use such as payday loans and pay-in-4 services. Maybe that us too since an investor may use bank borrowed money to fund them?