Do We Actually Need Debt?
Economics Explained
00:00
Do People Really Need These Loans?
Banks are not moving money from one place to another to write these loans. They are creating money out of nothing and securing their position with the promise that this money will be paid back. This whole system here makes some massive assumptions. It assumes that only sensible projects are funded, it assumes that the interest rate doesn't outpace the level of wealth creation. And finally, it also assumes that people need loans, or else nothing would ever get off the ground. In reality of course, all of these assumptions are iffy at best, or downright wrong at worst.
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