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Re: Image comments for Child Liberated by American Bomb
Posted by: Anonymous
Date: 26/08/2005 06:13PM
Let me offer a simplistic example:
10 people in a tiny village barter. Chickens for beans, knitting for pots, etc.
But barter is limited, each person has to have what the other person wants.
Walks into town an interesting person. He says: "Here, let me help. Each of you take 10 of these 'coins', and they will allow you to trade with each other for anything you desire."
This is great, the 10 villagers can now simply 'buy' whatever they want, and the method of exchange is greatly enhanced.
The stranger says, "I will return in one year, and I want each of you to bring me 11 coins. The 11th coins is a token of appreciation for the technological improvement I have made in your lives."
In one year's time, the stranger returns.
Where does the 11th coin each person must produce come from?
This is the mechanism of positive-interest. Some people get screwed. This is the essence of capitalism.
I'll bet your Commerce degree never touched on that fundamental problem.
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