Replying to Avatar Thorwegian 🇳🇴

"use savings instead of a loan" is a nice thought but most people aren't realistically saving much money.

also, suppose you're a business and you just got an order for 1 million gadgets and you can't pay your supplier for it unless you get a loan from the bank.

business banks will give a loan to pay for that sort of thing if you can prove that you can pay back later.
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Adarnit 2y ago

most people are not saving now because society does not incentivize it. The money system prefers borrowing.

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sondreolav 👀 2y ago

The problem is that nobody is motivated to save money with a currency that loses its value at an average of around 7% / year (and these are the best countries in the world) 👀

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sondreolav 👀 2y ago

And if you want to save to beat inflation, it becomes a job and you have to take on risks 🤦

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Adarnit 2y ago

With fiat, the only way to beat inflation is by getting a pay raise each year that beats inflation, which almost never happens.

You're probably more likely to get a pay cut nowadays tbh

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Adarnit 2y ago

That is why they have inflation built into the currency to begin with, to make you spend it! Saving is evil in fiat world.