Interest helps a small portion of people, while harming the majority.
>It’s just important that you pay off the card before the 18% rates kick in.
If enough people did that banks wouldn't bother.
>The problem with debt is when you use it purely for consumption instead of investment or increased efficiency of your consumption
No, it merely mitigates the risks, if your business venture goes sour you will not be in a good place. There's also the question of 'what counts as an investment' although this is a minute issue compared to the aforementioned.
> Interest helps a small portion of people, while harming the majority.
Would you rather that no one could get access loans? If you truly believe that position, it would very much undermines the autonomy and choice of the people without capital: businesses, individuals, start-ups, whatever.
If you think that interest is a bad thing, what is the alternative? Sharia finance? You wanna go back to times of usury laws? Or that Christians can't loan to other Christians?
What about government? You think there should only be negative interest rate bonds? What about the federal funds rate, LIBOR, T-note yields, etc? Do you have a coherent system that could replace these financial instruments?
>Would you rather that no one could get access loans?
If they had interest then yes.
>If you truly believe that position, it would very much undermines the autonomy and choice of the people without capital: businesses, individuals, start-ups, whatever.
Without interest the amount of capital those groups would need would significantly decrease. I'm willing to sacrifice a reasonable amount of autonomy in order to stop people burning themselves and devaluing the earnings of others.
>If you think that interest is a bad thing, what is the alternative? Sharia finance?
The alternative is a number of things working together, sharia finance yes, the end of fiat currency, guaranteed minimum income to get those without capital to a point where they can contribute to society and a restoration of trust based society so that those with close bonds will be more likely to loan to each other interest free and out of good will (this is probably the most difficult of the three but I have some ideas).
Okay, how about you give me $1000 and I'll pay you back when I die. I'm good for it, I promise.
If so, I'll give you my bitcoin address.
The time value of money is so fundamental, and so obvious, that you must be being deliberately obtuse to not understand it. Money today is worth more than money tomorrow.
>Okay, how about you give me $1000 and I'll pay you back when I die. I'm good for it, I promise.
I have no reason to trust you.
>The time value of money is so fundamental, and so obvious, that you must be being deliberately obtuse to not understand it
No one's saying time doesn't have monetary value, it's a variable many businesses depend on, but that shouldn't mean you simply get to do the direct conversion and sidestep creating meaningful longterm value and make it more difficult for those without money to get anywhere without being under your thumb.
Interest helps a small portion of people, while harming the majority.
>It’s just important that you pay off the card before the 18% rates kick in.
If enough people did that banks wouldn't bother.
>The problem with debt is when you use it purely for consumption instead of investment or increased efficiency of your consumption
No, it merely mitigates the risks, if your business venture goes sour you will not be in a good place. There's also the question of 'what counts as an investment' although this is a minute issue compared to the aforementioned.