What is The Interest Mechanism?
The Rule of 72 calculates the amount of time required to double the original loan/investment amount based on the interest rate. The higher the interest rate, the quicker the value doubles. Within the context of the economy, this mathematical phenomenon needs a release, which occurs in the form of price inflation and National Debt. One man’s profit becomes another man’s debt. (The creditor vs debtor conflict.) Debt and inflation drive the demand for bigger profits and bigger wages. (The owner vs the worker conflict.) Productivity gains and higher selling prices are the survival responses of those who produce goods. (The Cost of Living increases with productivity gains.) Debt and increasing overhead drives sales and marketing at a frantic pace. Any action that creates a profit can be justified. (It takes money to make money, or slash costs – assume more debt or cut jobs.) The results become either a big success or a big failure. Moral and environmental consequences of economic activity b
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