ELI5- how exactly do ‘bankers’ become the richest people around(Jp Morgan, Rockefeller, rothschilds etc.), when they don’t really produce anything.
In: 17100
If you sell a service, you are selling your time for money. Since there is a limit to how much time you have, there is a limit to how much money you can make.
If you sell a product, the product is made of material. There is a limit on how much material you you can obtain so there is a limit on how much money you can make.
A banker uses money to make money. They loan money and charge interest. They don’t actually have to possess the money they loan. They don’t actually have to get any physical monkey back (just numbers on a ledger) and they can loan out even more money from the interest they get back. There are no physical limits, so they just keep getting more money.
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