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Another tangible example is renting a tractor to a farmer that couldn’t otherwise afford one. Their income from crop production goes up (even after tractor rent
by spacebanana7 2y ago
Another tangible example is renting a tractor to a farmer that couldn’t otherwise afford one. Their income from crop production goes up (even after tractor rental expenses) and society also gets more food.
- mcmoor 2y agoCommunists will say this is still rent seeking and the tractor should be seized and given to the farmer.
- deleted 2y ago[deleted]
- eru 2y agoGood luck keeping the guy who builds the tractors motivated.
- thrance 2y agoBut wouldn't it be even better if the farmer bought the tractor on a loan? Now the farmer keeps the entirety of his production and the guy that would have rented the tractor also has to work, further improving society.
- wezdog1 2y agoWhere does the interest go
- thrance 2y agoTo the person that made the loan, to compensate them for the risk they took. No need for anyone to profit from the work of another forever.
- sokoloff 2y agoThat's the decision to be made by the farmer either selling equity or taking a loan. From the perspective of the banker/lender, they're still living off someone else's labor (which is fine for me since it's the result of a voluntary exchange for something else of value, but it seems like it's not for some upthread posters).
- loco5niner 2y agoSo it's ok to rent out money but not rent out tractors?
- ElevenLathe 2y agoThe farmer is either renting the tractor or renting the money to buy the tractor. Which is better depends on details like the rate of the loan/rental and the expected utilization of the tractor.
- loco5niner 2y agoHow is that different. In either case the farmer is paying someone (interest/rent) more for the use of the tractor than just outright buying it (which he does not have the capital to do).