[–] whyamIevenhere 1 point 0 points 1 point (+1|-1) ago (edited ago)
Didn't realize this site was all Muslims and commies. Holy shit, you're all economic retards. Lost a lot of respect for voat over the last two days.
[–] 0100100-100110 ago
I lived in the middle east for a few years. Interest rates didn't exist. Instead it was tied into the price of the object. Paying in full have the cheapest price, the longer you wanted to make payments the more expensive the item became.
How does interest create new currency? Imagine if the loan didn't involve any money, just labor: I'll do this work for you over the next week if you do the same in return a year from now, plus an extra day of work. No money at all, but still interest.
Interest is just recognition that things now are often more valuable than things in the future, because of the benefits they provide over time.
[–] daskapitalist ago
What if I dont want equity?
[–] FreeSpeechForever 0 points 1 point 1 point (+1|-0) ago
The only caveat is that time has value. Capital today is worth more than capital tomorrow, but the current amount of interest on loans far exceeds these measures.