posted by dennisn on March 1st, 2015 at 7:14PM
If you have three people on an island (as my coworker suggested), and say there is a fixed supply of 3$ distributed equally among them, and one guy asks for a 1$ loan with 1$ interest payment, that guy now needs to repay the lender 2$. Where's he gonna get that money?
Your point about interest not necessarily being mean or exploitive is a good one.
Your point about chocolate actually indirectly leads to one possible solution, even though you might not be aware of it. In particular, the supply of chocolate is not fixed (as my original condition stipulated), so it can be "inflated" to supply debt obligations. But is inflation the only solution? Can interest sustainably exist with a non-inflating currency?
Your point about interest not necessarily being mean or exploitive is a good one.
Your point about chocolate actually indirectly leads to one possible solution, even though you might not be aware of it. In particular, the supply of chocolate is not fixed (as my original condition stipulated), so it can be "inflated" to supply debt obligations. But is inflation the only solution? Can interest sustainably exist with a non-inflating currency?
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posted by jenni on March 1st, 2015 at 7:50PM
Don't lend dollars when you know there is a fixed supply of three dollars. What kind of island is this? ;) People on islands could use fruit as a commodity.
I think interest can sustainably exist as I understand it as more of a incentive for the loaner to loan out their wealth than as something to do with inflation.
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