Comment: Without fractional reserve banking, debts would be paid to labor

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Without fractional reserve banking, debts would be paid to labor

Without the ability to manufacture surplus money, the only way to fund the salaries of workers in an economy that's set on saving would be to issue certificates of deposit to workers.

They would be promised money to be paid down the line, when the velocity of money (and consumption) increase. As such, interest would be paid to them.

Think about it.