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News Slumdog pound

  1. Oct 25, 2009 #1
    Does the interest we "earn" from savings originate in large part through the labor and sacrifice of the world's destitute?
     
  2. jcsd
  3. Oct 25, 2009 #2
    Nope, it's earned from the bank barrowing our money...

    The world's destitute contribute nothing to the interest of my investments. Of course, you need to define "destitute". Depending on the definition, I might be destitute.
     
  4. Oct 25, 2009 #3
    This can become a hot issue.
    My opinion is that interest is earned on shares in corporations owned by the bank and by other investors. The corporations have a single mandate from their owners: make a profit!
    The corporations' activities are therefore directed singly toward profit making, and any humanitarian departure from these activities will result in a comparative loss as other corporations keep their own greedy activities up and therefore make a greater profit.
    The corporations which make the greatest profits get the most attention from investors, and so it goes.
     
  5. Oct 25, 2009 #4

    russ_watters

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    No, it really isn't. It is as drankin said.
     
    Last edited: Oct 25, 2009
  6. Oct 25, 2009 #5

    Office_Shredder

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    So to further clarify for people with an example:

    The bank gets a 1,000 dollar deposit from you. Also from four hundred other people. Someone then comes to the bank and asks for a four hundred thousand dollar mortgage. The bank makes money on this mortgage, which is financed entirely by your deposit, and others like you. The interest you get is the bank paying you back some of the money they made on that mortgage
     
  7. Oct 26, 2009 #6

    russ_watters

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    ...And the difference between the interest paid to the bank and paid by the bank is the bank's profit.
     
  8. Oct 26, 2009 #7

    arildno

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    The "destitute" stand OUTSIDE the economic system; they neither contribute nor get anything from it.

    So no, the leftist view is simply false.
     
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