House of Paine

why pay interest ?

there's 
two good reasons


  inflation adjustment

i.e.
maintain purchasing power
agin price changes 

and less  obviously
productivity adjustment 

ie 
oh 
well let me explain.....


======================


 idiot anti caps
don't get the social function of a rate of return on investment

ie a real rate of interest 

well heres its positive aspect isolated for ya...

 
I call it :

the two points in time
             labor 
                productivity differential 

    compensation/equalization rate

cause ain't it fair as a first apporoximation

to make
      labor time able to buy
        the product
    of  equal labor time 

details:

since  three hours worked  today 
with todays equipment and know how
and three hours 
worked twenty  years from now
with the know how and equipment of then
won't 
produce the same real output 

the rate of interest should comp the defered consumer for this diff

ie equal time for equal time
means a real gain if productivity is up 

notice in 
my city
this interest rate
 covers  workers savings
  out of hard earned wages only


oh ya

the one big bad reason

that may still need to exist

for plan purposes
but 
 oughta be taxed away 

any rate part
that is 
a   rent 
used for rationing 
limited funds
so they go to 
most productive alternatives 
first

withenough innovations
so replacement rate
plus exceptable accumulations
are  not enough 
to zero this out 
 there may be scarce funds and rationing 

of course it would be
 only at full tilt production 

 
an artificial  scarce factor....