What would happen if charging interest became illegal .?

Question

The working class no longer charged itself for borrowing money like it does now .
Only people who have money benefit from interest .
The only way they got money was to collect it from working people as a fee for showing them how to perform a routine task over and over that they continue to profit from .

Everyone who is rich has profited from the workers because alone the Ford family could only make a dozen cars a year .
But by showing a few people how to make a car they where able to become billionaires and in the process share the wealth with other people who had lots of money to invest .

SO its simple ELIMINATE INTEREST and save the poor working man from 6% on home loans which amounts to $8000. a year to 12% -25% on consumer goods like clothing and and other Items purchased on credit .

That credit is the work of others being produced and the profits from which all go to the so called investors who take huge profits out of the work and credit they willingly provide .

Answer 1

Why would anyone lend money? For a fee?

Answer 2

The economy would collapse.

In the long term it would be good. People would have to live within their means instead of living on credit. Massive amounts of money would be available for the average person to better themselves. For example, my house cost ~$100,000, but I will pay more than $300,000 because of all the interest. Without interest, I'd have $200,000 more to spend on other stuff to drive the economy (education, starting a business, investments, etc.). That would be fantastic.

However, in the short term it would result in a collapse far worse than the Great Depression. Just imagine how many would be unemployed when every bank, mortgage company, and credit card company goes out of business.

Answer 3

Where do you expect this money to come from? The Federal Reserve should not be allowed to give money to whoever wants it. Just because you want to buy a house doesn't mean that you should be entitled to free money. Why would you bother paying off a loan when there isn't any interest? So Americans continue to go further in debt, we're already past the $9 trillion mark. That's scary. Not to mention, what would be the incentive to give people money if your not going to get anything in return?

Answer 4

Eliminate interest and you can kiss all lending goodbye.

no more credit cards. no more mortgages. no more car loans.

And because banks could no longer charge interest, they could no longer PAY interest either. you could kiss saving accounts goodbye.

it just won't work