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| I would have to agree with your last post. The ability to raise capital to invest through credit accelerates economic growth there is no doubt. However that still in no way justifies the current monetary system. There where loans and debt under different economic systems before are own existed. Allot of places that are poor today either have a terribly oppressive government, a culture that would rather not industrialize, terrible farmland or religious beliefs holding them back. Besides most countries today even poor ones have a central bank similar to are own.
Someone could make a case that the current system allows for a extremely rapid growth because its great for gathering capital to invest. How ever it can all come tumbling down like we have seen in the past as well. I would much prefer steady economic growth with a low amount of risk as opposed to fast growth and economic instability along with the concentration of wealth into the hands of a few. We hear allot about the so called 1% and greed. Its more in reality like the .0001%. The reason wealth inequality is so huge is that the current system is controlled by a handful of people who can completely rig system in there favor. They know what the rate of inflation will be and what interest rates will be among many other things. These people also have the ability to secure government contracts for there business and write legislation in there favor for anyone who hands them a bribe. Thus creating monopolies through corrosion instead of offering the best product/service.
Trusting a group like the fed board to be looking out for the public's best interest is not stupid its downright naive. | |
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Next economic question. WHY is debt so prevalent throughout the world today?
