3 ms·
"Everyone has access to low-interest credit under the same conditions as the big players." just sounds like a fantastic (in the fantasy sense) recipe for inflat
by Nasrudith 3y ago
"Everyone has access to low-interest credit under the same conditions as the big players." just sounds like a fantastic (in the fantasy sense) recipe for inflation as the underlying capital and goods sought remain constant but the monetary supply increases. In addition to potentially creating something resembling another 2007 financial crisis worth of mispackaged bad debts.
- Dibby053 3y agoCentral banks fought the 2007 crisis by increasing the monetary supply of a receding economy, so I don't see how removing the intermediaries and having the central bank itself allocate the resources in a fair way could make things worse than they are now. I'm not talking about letting people borrow at 0% to spend in food and utilities. What I'm thinking of is a system where the path from business plan to business isn't determined as much by the amount of capital one already has, which is what causes the usual corporate structures to be formed in the first place: those who assume "all" the risk in turn receive "all" the benefits. That often doesn't reflect the real stakes at play. Investors can have a diversified portfolio (and often plenty of spare capital for more tries), while workers invest 100% of their work on the same company for years or decades. The co-op model is more natural but the dynamics of money make it more rare than it should be.