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Interest is still a payment for services rendered. Specifically, it is a payment for the service of not sending goons with guns to kick you out of your home. (That's also the service taxes are paid for.)

BTW, why only landless need this "protection?" Not owners? They pay neither interest, rent nor taxes.

One would think that property owners need protection against the poor, right?

by kjr63 on Wed Jun 8th, 2011 at 06:27:09 AM EST
[ Parent ]
That's why property owners pay taxes.

Anyway, John Stuart Mill altready theorised about private property along these lines:

Further, in the social state, in every state except total solitude, any disposal whatever of them can only take place by the consent of society, or rather of those who dispose of its active force. Even what a person has produced by his individual toil unaided by any one, he cannot keep, unless by the permission of society. Not only can society take it from him, but individuals could and would take it from him, if society only remained passive; if it did not either interfere en masse, or employ and pay people for the purpose of preventing him from being disturbed in the possession. The distribution of wealth, therefore, depends on the laws and customs of society. The rules by which it is determined, are what the opinions and feelings of the ruling portion of the community make them, and are very different in different ages and countries, and might be still more different, if mankind so chose.
(diary)

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Wed Jun 8th, 2011 at 06:41:23 AM EST
[ Parent ]
Why does labour pay taxes?

Mill is obviously right.

by kjr63 on Wed Jun 8th, 2011 at 10:35:10 AM EST
[ Parent ]
..and even if we had this "protection money circle," that does make it right nor change economic laws.
by kjr63 on Wed Jun 8th, 2011 at 10:46:39 AM EST
[ Parent ]

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