Re: Growth, Interest and Wage Inequality - To the austrian economists here
Why must money profit as much as the average growth without risk?
This! ^^^ That right there is the part that keeps making me go "What?
" What do you mean by "money making profit?" Money by itself doesn't make profit, and money lent makes profit that is equal to interest based on the borrowers risk rate and the supply of available money to be lent. Is the second part, the supply of available money, the part you are calling "money profit" that you are against?Money can take the basic interest from the wares. If the wares don't pay the interest, they aren't sold. And the wares lower its price until they're sold, that's their nature.
The supply of money is scarce (or that money concrete money dies by hyperinflation) and no sector has produced it (forget our current regulated financial system): the whole community has given it the value.
Money takes profit because its scarce and it (unlike wares and the time of workers) last forever at no cost.