dispite what happen in present time or what the economicals say
2006-07-26 00:46:03 · 6 answers · asked by ibrahim a 2 in Social Science ➔ Economics
Interest is "usury", which is a form of increasing Socialism. It is a form of slavery.
Nothing can grow at even 0.25% per year forever:
"If you invested 1 oz. of gold 6000 years ago, and compounded it at ¼ of 1% per year, then you’d own more gold than has been mined in the history of the world, over 6 billion ounces, which is obviously impossible."
2006-07-26 04:54:41 · answer #1 · answered by Shelby M 1 · 0⤊ 0⤋
Fear or fair?
You could say that lenders who charge interest do so out of 'fear', since there is risk in lending (the borrower could run away with the money, could default, etc.). It is more accurate to say that the need for security (ie, collateral) stems from this fear, while interest is requested in order to earn profit.
If you are concerned about fairness, I can understand that. Predatory or unfair interest rates are generally those that either are too high to allow successful payment of the loan, or are beyond what the lender needs to offset the risk of the borrower. That said, a high interest rate is not necessarily unfair - sometimes these are charged as a way of preventing high-risk borrowers from borrowing. I used to work in collections and would see contracts with greater than 20% interest charged... these were on buyers with credit scores below 400, which more or less means they've had a repo or two, defaulted on several credit cards, declared bankruptcy, etc.
The most unfair situation is when a credit card requires you to keep cash on deposit with them in the amount of the credit line AND charges a high rate. There's no risk of loss in that situation, and so no reaosn for them to charge the high rate.
2006-07-26 09:22:03 · answer #2 · answered by Veritatum17 6 · 0⤊ 0⤋
Economics evolves around three main factors namely : Land, Labor and Capital. If capital is there it will associate cost which can be termed as interest, dividend etc etc. Thus, interest need not mean fear as it also implies interalia quantum of capital.
2006-07-26 08:58:03 · answer #3 · answered by lahirisoumitra 2 · 0⤊ 0⤋
Interest is not fear. It is the price you pay for using someone else money that they could have used for something profitable. Either you pay them an amount that will make them give up their alternative or you don't get the money
2006-07-26 11:17:15 · answer #4 · answered by Bweza Jaja 2 · 0⤊ 0⤋
Interest is basically the price of money. Money is a commodity.
2006-07-26 10:16:24 · answer #5 · answered by erik c 3 · 0⤊ 0⤋
No they are too low and should be > 10%.
2006-07-26 12:48:22 · answer #6 · answered by paulofhouston 6 · 0⤊ 0⤋