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But 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 rente
by thrance 2y ago
But 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).