You must be really naive if you think that isn't the case already.
Imagine a bitcoin standard where the rich own all the Bitcoin and governments force you to use Bitcoin. The rich have no reason to lend you Bitcoin for free, you don't need the Bitcoin, you need the loaf of bread and you are willing to trade your time for that loaf of bread but since the middleman Bitcoin was inserted, you are forced to borrow in the hope that you can pay the money back. Nobody lends out money for free, you are going to have to pay interest. The best part is that you are going to default as the interest payments end up in the wallet of the rich guy you just borrowed money from, due to the magic of compound interest he is going to lend his money out again. This means your debt is unpayable because interest payments must recirculate in the economy and somehow end up with you again but in this case they are just being lent out again. The only thing you can do is outcompete some other guy and take the money he borrowed into the economy to pay your own debt. Since someone is going to lose this competition there are going to be destitute and poor people in your society. The only known way out of this mess that is commonly practiced is to force the economy to grow faster which degrades the environment and results in ever inequality. The obvious solution and actually working solution is to make liquidity have a cost so that withholding money from the economy is impossible over the long term.
Money is power and control for those who have it and their power extends beyond what they can buy with it, it also extends to those who don't have it.
imtringued|3 years ago
Imagine a bitcoin standard where the rich own all the Bitcoin and governments force you to use Bitcoin. The rich have no reason to lend you Bitcoin for free, you don't need the Bitcoin, you need the loaf of bread and you are willing to trade your time for that loaf of bread but since the middleman Bitcoin was inserted, you are forced to borrow in the hope that you can pay the money back. Nobody lends out money for free, you are going to have to pay interest. The best part is that you are going to default as the interest payments end up in the wallet of the rich guy you just borrowed money from, due to the magic of compound interest he is going to lend his money out again. This means your debt is unpayable because interest payments must recirculate in the economy and somehow end up with you again but in this case they are just being lent out again. The only thing you can do is outcompete some other guy and take the money he borrowed into the economy to pay your own debt. Since someone is going to lose this competition there are going to be destitute and poor people in your society. The only known way out of this mess that is commonly practiced is to force the economy to grow faster which degrades the environment and results in ever inequality. The obvious solution and actually working solution is to make liquidity have a cost so that withholding money from the economy is impossible over the long term.
Money is power and control for those who have it and their power extends beyond what they can buy with it, it also extends to those who don't have it.
notpushkin|3 years ago