POLITICS & DONALD Annoying Orange MEGATHREAD

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Cappytaino:

--- Quote from: Foxscotch on January 01, 2018, 01:32:52 AM ---you definitely could've chosen a better example, like investment or some stuff. loans are pretty often predatory, and universally (at least in the US) place a higher burden on people who already have money problems

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You're right in the assertion that irresponsible lending can have incredibly vast ramifications on the economy (see: buying stocks on margin in the 1920s, banks irresponsibly giving mortgages to people that can't afford them in the 2000s, etc)

But the beauty of bank loans is that there is a surplus of accessible capital, which allows for wider market participation in terms of entrepreneurship, home ownership, etc from the average individual. Here's a (very simplified) example of what I mean:

- Person A goes to the bank and deposits $100. The bank has a 15% reserve requirement, leaving the bank free to lend $85 of the $100 it holds.
- Person B comes to the bank to borrow money to buy a fancy new Widget. They borrow the $85, which they use to pay the Widget salesman.
- The salesman deposits his $85 into the bank, meaning the bank has now stored $185 in deposits, with a 15% reserve requirement on the new deposit requiring $12.75 of that cash to be held in reserve.
- The bank can now lend that $72.25 of the new deposit which is not required to be held in reserve, and person B will repay their loan, giving the bank the $85 + interest (let's just assume 5%, so $89.25 is repaid)

To recap, the bank now holds $185 in deposits, will receive $89.25 from the balance owed to them, and is free to lend any other cash not required by regulation to be held in reserve, thus the bank has created wealth, although the bank is unable to literally print currency.

--- Quote from: Juncoph on January 01, 2018, 10:48:59 AM ---name one system where you, a healthy, fit-for-work human being, don't starve by not working

communism would label you a social parasite
capitalism wouldn't pay you
all forms of anarchy would just directly have you starve

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A socialist welfare state would subsidize economic parasitism (until they run out of other people's money to spend due to incentives for workers to not work and for people with money to take it out of the economy and put it somewhere else)

Juncoph:

--- Quote from: Cappytaino on January 01, 2018, 12:24:43 PM ---(until they run out of other people's money to spend due to incentives for workers to not work)

--- End quote ---

at which point everyone starves

Cappytaino:

--- Quote from: Juncoph on January 01, 2018, 12:35:15 PM ---at which point everyone starves

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and then upper-middle class university students born and raised in the United States, a western capitalist republic, claim that it wasn't real socialism ad-nauseum, and that we should try socialism, too.

And the cycle continues

Editing because I found an interesting statistic:

51% of millenials would rather live in a Socialist or Communist society, compared to 42% that favor capitalism, and 7% that favor fascism.

Corderlain:
Probably because higher education at this point is full of socialists and hyper political asshats.

Cappytaino:

--- Quote from: Corderlain on January 01, 2018, 12:46:58 PM ---Probably because higher education at this point is full of socialists and hyper political asshats.

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The Overton Window in higher education is shifted quite far to the more radical part of the left wing of the political spectrum. Expressing any sort of conservative idea to the right of that which would be considered "moderate" is basically thought crime to the administration at my university. But advocating for communism is perfectly okay, and we have a club on campus called the Radical Students Association that does exactly that.

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