Quote:
Originally Posted by Crumb
Can you suggest an alternative way the banks should be run? Should they not be allowed to loan out any money that is deposited? That would be the only way to eliminate this creation of money. It would also completely destroy the banking industry and the world economy.
|
It would destroy the banking industry and world economy as currently constituted. In the short run that would be a bad thing.
In the long run, not so much. People would still want a form of banking to keep their money safe and allow easy payments/transfers without having to carry loads of cash everywhere; people would still want to be able to invest their savings in ventures that might make a profit.
Maybe it would be better if banks functioned just as giant money boxes, and a means of processing payments without using cash. Banks would then have to charge for their services if they couldn't make money by investing our cash.
In the very long run, if and when automation and robotics renders most everyone unemployed, there will have to be a new way of distributing goods around to where they're needed. Maybe this could be done without using money at all - the Star Trek model - or perhaps everyone will just be issued with an allowance to spend however they wish.
We'll need to come up with something - otherwise the machines will be producing all these goods and food items, but no one, except maybe celebrities and athletes, will be earning any money to buy the items.