Banks

All forms of loans should be removed from all parts of the world.

That would remove all debt in the future.

Idea for the world
Laws
Vote
44%
56%
Votes
9
Views
1376

5 Comments

  • The problem loans are unfortunate for everyone concerned however loans can be great for people starting up a business (for one). That's why I object.

  • I understand the basic reasoning behind this argument but its based on almost primitive economics. Loans may mean debt and we may not want debt, but in cases we need it. Loans allow us to stimulate growth or speed up the rate of already guarranteed growth. Furthermore access to loans act as a form of safety net for firms and households who have levels of income roughly equal to their income. Furthermore loans are essential for savers. Overtime we produce more, but we want our goods to remain roughly the same price (relative to the amount of money in circulation). This means that we aim for inflation roughly equal to the rate of growth. Because some people don't want to spend all of their money, because we can never really predict a rainy day, people want to save their money. If money is simply stored in a safe it loses value because of inflation. By offering loans to borrowers, savers can be assured that their savings keep or gain value.

  • I object because loaning has a lower barrier than giving as a present. Loaning is what we typically do when helping others by temporarily giving them something they need. I dont want to remove that.

  • I object because debt is necessary for growth. People need risk or grow and many cannot afford that risk without a loan.

  • I object because I think you should read an economic text book and get back to me.

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