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Guest-5ty5s4
Guest
<div class="bbWrapper">So I'm trying to formulate my idea of how the economy works and would like others to think about this too.<br />
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New money is created via debt - yes or no?<br />
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Banks lend out money, often in the form of either a business loan or a mortgage.<br />
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So let's say that I get a business loan and I hire 20 people. Those 20 people each get mortgages. Their work pays down my business loan over time, and in return I pay them wages or salaries, which they use to pay down their mortgages over time.<br />
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This would eventually cancel out my debt and their debt. New value and new wealth was created! ...Right?<br />
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Is that true? Can it really work that way across the board, or is more debt always necessary?<br />
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I'm trying to figure out how this all fits together intuitively.<br />
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Honestly, <a href="https://www.thefastlaneforum.com/community/members/132/" class="username" data-xf-init="member-tooltip" data-user-id="132" data-username="@JScott">@JScott</a> ... your expertise would be great for this question.<br />
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edit: guys...I know what value is and that it isn’t money. I’m asking people how the government, banks, etc actually function. I’m not asking for people to tell me my own ideology! I am already pro-capitalism and value <img src="/community/imgs/emoticons/em-smile2.png" class="smilie" loading="lazy" alt=":)" title="Smile :)" data-shortname=":)" /></div>
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