reply to post by ProfEmeritus
I'm not talking about a legal definition of the word today. I said usury is historically
immoral and criminal. This means charging ANY
Each person in our world has a slice of the pie of available money that exists... some have a little, some have a lot. If compound interest is
permitted, then whoever has the largest pile of money sitting in the bank collecting interest will be increasing their wealth faster than anyone else.
Their huge pile of cash allows them to gather money faster than all their competition.
For example, if you have a million dollars at 5% interest, you have an automatic "income" of $50,000 per year. Great, you say.
A billionaire, however, has an income of $50 million
dollars a year. That's a million dollars a week for doing nothing. And the more they
get, the faster they get it.
If you follow the flow of money in such a scenario, you'll quickly see that whoever has the most money earning the most interest eventually eats up
all the money left in the world, until everyone else ends up with nothing but debt to this person.
I'll say that again: Compound interest lets 1 "winner" get everything, while everyone else ends up with nothing but debt to this person.
Understanding this fact brings up questions of morality. Is it ethical to let wealthy people prosper so much simply because they have
to prosper with? Where do we go once the rich own everything? Is this the economic world we want to live in?
The rich will own it all... it is a mathematical certainty. The only thing missing from making this obvious to everyone is time. Either we permit
compound interest to exist, or we permit 1 person to own us all. The choice is ours.
You know how the saying goes... "The rich get richer." This is why.
[edit on 2-2-2009 by username371]