Mar 5, 2020, 1:25 PM
—“What would be the propertarian view on lending with interest? Or investment banking?”—
Interest is necessary for temporal calculation of production, distribution and trade, but not for consumption. All end point interest, meaning consumer credit on capital purchases (durable goods) under fiat money(a fractional share in the economy) is rent seeking (prohibited).
Houses, boats, cars, appliances, furniture, clothing etc – anything not entertainment is rent seeking. If we exchange zero interest for accelerated payments we dont disrupt the pricing system (rapidly) but we do rapidly make children affordable.
Similarly there appears to be little value in private insurance against catastrophe. Anything that can be calculated with that degree of statistical precision, yet it subject to the creation of rent seeking and hazard in the business side, can be done without the business side as a non-profit treasury run piece of infrastructure.