> Financing works because banks "print" money, that is, they make up money and loan that money out, and then it gets paid back
Don’t forget persistent inflation, which is how they make a profit off printing money. And remember persistent inflation is healthy and necessary, you’d be going against the experts to say otherwise.
> Don’t forget persistent inflation, which is how they make a profit off printing money.
Ah, well no, high inflation means that "they" loose money, kinda. Inflation means that the original money amount that they get back is worth less, and if the interest rate is less than inflation, then they loose money.
"reasonable" inflation means that loans become less burdensome over time.
However high inflation means high interest rates. So it can mean that initially the loan is much more expensive.
The vast majority of trees are planted because the value of a sapling ismore than a seedling. It doesn't matter that you will never know the shade, and that the sapling is worthless for industrial purposes, you can profit quite quickly.
To be more explicit, the time value of something closer is higher than one further, so you can actually induce under even a hypercapitalist society any arbitrarily long delay investment with 0 'real' payoff until the end.
Don’t forget persistent inflation, which is how they make a profit off printing money. And remember persistent inflation is healthy and necessary, you’d be going against the experts to say otherwise.