On Tue, 11 Jan 2000, Keith Hudson wrote:
> I refer to John Courtneidge's message on interest.
Both the positive and negative aspects of compounding interest were
recognized long ago. The old testament idea of a "jubilee year", freeing
people from debt slavery every 50 years, attests to a desire to take
advantage of the benefits of finance through interest-bearing loans while
limiting the ultimately destructive power of such arrangements. Compound
interest is like water or fire -- a little bit of it is a very good thing,
too much of it and you'll drown or burn.
In modern times, progressive income taxation has served as the best
measure for counteracting the excesses of compound interest, while
permitting its benefits. Perhaps the slogan should be: "No compound
interest without progressive taxation!"
Tom Walker
TimeWork Web
http://www.vcn.bc.ca/timework/worksite.htm
