Re:An experimental program in Austria that creates work for ...
by quickthrower2 on Saturday December 10, 2022 @04:15PM
(#33936873)
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.
Re:An experimental program in Austria that creates work for ...
by sin7 on Saturday December 10, 2022 @04:21PM
(#33936925)
Can poor people take out a loan and create new money?
Re:An experimental program in Austria that creates work for ...
by loa_in_ on Saturday December 10, 2022 @04:24PM
(#33936962)
They don't, and in times where there's most need for that, banks squeeze their wallet close even tighter.
Re:An experimental program in Austria that creates work for ...
by quickthrower2 on Saturday December 10, 2022 @05:04PM
(#33937369)
My 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?
Re:An experimental program in Austria that creates work for ...
by raincom on Saturday December 10, 2022 @04:07PM
(#33936797)
Or devalue the dollar to the extent that $1 becomes $2. In which case, the person who holds $99 doesn't hold $99 as "raw cash"(nominal asset), but holds $99 worth of real assets. With this inflation or devaluation, his $99 will become $198 + delta. This delta comes as rent extraction from the ordinary people.
Eventually it just becomes a physics problem. If $100 exist in the world, and one guy has $99, and you need to fund something that takes $2, you have to get $1 out of the rich guy somehow.