Arthur · 6 answers · 1y

Financial question: what would happen if interest didn't exist?

I think there would be no banks, credit card companies, or financing, because they'd all go out of business because they couldn't offset the cost of defaulters with the interest of non-defaulters. Even with no defaulters (or, with banks, even considering that you have to have collateral), they wouldn't make any money so they'd have no reason to exist.

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