Is interest unethical?

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reasoning logic
 
Reply Sat 13 Mar, 2010 07:00 pm
@kennethamy,
kennethamy;139414 wrote:
reasoning logic;139410 wrote:


You think that a world without commerce would be a better world than the one with commerce? Why? What is wrong with interest except that it happens to offend you? Consider this quote by Adam Smith:

It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.
Adam Smith
I see nothing wrong with that quote at all, and no I do not have a problem with commerce, and I do not have a problem with interest as long as it is only to pay for a fair salary of those who distribute the money and not a penny more.Smile
 
kennethamy
 
Reply Sat 13 Mar, 2010 08:55 pm
@reasoning logic,
reasoning logic;139415 wrote:
kennethamy;139414 wrote:
I see nothing wrong with that quote at all, and no I do not have a problem with commerce, and I do not have a problem with interest as long as it is only to pay for a fair salary of those who distribute the money and not a penny more.Smile


Yes, we are all for being fair. And money is a commodity like any other commodity. I had been under the impression that you felt there was something wrong with treating money as a commodity, but I suppose I was wrong. My mistake. But I thought it was you who wrote:

It's hard to imagine a world with out usury. Call it what you want but that is what lending money is all about.
 
josh0335
 
Reply Sun 14 Mar, 2010 03:19 am
@kennethamy,
kennethamy;139436 wrote:

Yes, we are all for being fair. And money is a commodity like any other commodity. I had been under the impression that you felt there was something wrong with treating money as a commodity, but I suppose I was wrong. My mistake. But I thought it was you who wrote:

It's hard to imagine a world with out usury. Call it what you want but that is what lending money is all about.


If I could refer you to the same point that I've made to others, being what about central banks that create money with interest in such a way that it is impossible for a population to get out of debt? Is this ethical? Or is it simply the way it has to be for money circulation to and commerce to work?

Also, what is your opinion on one of William's points that money is not a commodity but a means to control commodities? Money on its own is of no use unless it can be used to purchase useful things. Is this an unecessary distinction?

I disagree that credit would dry up in a non-interest system. We've been programmed to think this way because it's the only way we've ever known it to work.
 
reasoning logic
 
Reply Sun 14 Mar, 2010 07:20 am
@kennethamy,
kennethamy;139436 wrote:
reasoning logic;139415 wrote:


Yes, we are all for being fair. And money is a commodity like any other commodity. I had been under the impression that you felt there was something wrong with treating money as a commodity, but I suppose I was wrong. My mistake. But I thought it was you who wrote:

It's hard to imagine a world with out usury. Call it what you want but that is what lending money is all about.


I do see a problem with what I am about to propose because of the way our economic system is ran. The rich would put up a fight against anyone trying to attemp to change it. [Even if it would make society better as a whole] I do see a need for money to be lent but I would like to see it be done at a very low interest rate. when I say low I am thinking around 1% or what ever is required to maintain the salaries of the workers involved in the lending process.

There are many people that do not have to work a day in their lives as they have so much money they can live off the interest. I see this as not contributing to society but rather rapeing it. Many of us who have been fortunate enough to be able to have a surplus in our income and know how to invest properly are able to receive alot more wealth from the high interest we gain from the misfortune of others.
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Interest is as close to love as you can get! I love being able to loan money to you and all of your family members, Your Mother, father, brother, sister and all of your other family members that are in a position to borrow and pay it back. It is how I am able to afford all that I have. With out my financial instruments I would have to work for a living like the rest of you servants and I would not let that happen. No I am not serious
 
Lost1 phil
 
Reply Sun 14 Mar, 2010 09:07 am
@josh0335,
I do not think it is unethical for someone to ask to borrow and the lender to charge and interest fee based on a percentage and length of time as long as the borrower is clearly made aware of what the percentage and length of time are.

However, lots of not easily understood wording, and the use of different size print always leaving me questioning the ethics of the lender Wink

Lost1

P.S. If a family member or friend is in need, I feel better when I give without being asked, expecting nothing in return. I loan with interest, especially to those who appear poor money managers. They are easily spotted, they are the ones who return asking for another loan. If loan is not repaid - the lending is cut off. It's better for them, and easier for me.
 
kennethamy
 
Reply Sun 14 Mar, 2010 10:22 am
@josh0335,
josh0335;139504 wrote:

I disagree that credit would dry up in a non-interest system. We've been programmed to think this way because it's the only way we've ever known it to work.


Why would people lend money without interest, and if money could not be borrowed, where would capital come from?
 
josh0335
 
Reply Sun 14 Mar, 2010 01:52 pm
@kennethamy,
kennethamy;139600 wrote:
Why would people lend money without interest, and if money could not be borrowed, where would capital come from?


If by people you mean banks, then they can lend money based on the assets they have if they were nationalised institutions. Profit through interest would not be necessary. Investment banks would still work without charging interest as they would benefit from any profits made by the borrower. Restructuring corporations to include liability, restructuring the stock market, restricting derivatives and having more bank-like venture capital firms can result in circulating credit without the need for interest. I'm sure there are other ways too. Essentially, banks and investment companies would have to lend money, even for lower profit yeilding ventures, with the hope of making money through profits of the borrowers.

Credit companies would almost certainly not exist without interest. But these types of companies are not vital for a capitalist society to function.

Is it that you consider charging interest ethical because you see no other alternative? Is it ethical to charge a population interest on its money supply knowing full well it can never be paid back?
 
 

 
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