Most people would reflexively answer yes — of course interest helps people save. That’s the whole idea behind saving — you set aside a portion of your earnings and then interest causes that amount to grow — hopefully enough to allow you to live off your savings once you’re too old to work.
Trying this again since I don’t think it worked the first time. It’s very interesting and persuasive what you say about interest. I do wonder empirically whether people do think interest is a net positive thing or realize it has a net negative outcome for most people or if they’ve simply never thought about it at all and have always accepted it as the way things are. I would be in the latter category. You are obviously suggesting that interest has a harmful overall impact and I certainly agree with your case for why we should not feel justified in expecting interest on our savings. But how about from the institutional lender perspective? Are you saying institutions like banks and credit card companies should not charge interest? If not how would it work for them to advance funds/credit?
Trying this again since I don’t think it worked the first time. It’s very interesting and persuasive what you say about interest. I do wonder empirically whether people do think interest is a net positive thing or realize it has a net negative outcome for most people or if they’ve simply never thought about it at all and have always accepted it as the way things are. I would be in the latter category. You are obviously suggesting that interest has a harmful overall impact and I certainly agree with your case for why we should not feel justified in expecting interest on our savings. But how about from the institutional lender perspective? Are you saying institutions like banks and credit card companies should not charge interest? If not how would it work for them to advance funds/credit?