Distributive Justice: The Right and Wrong of Our Present Distribution of WealthRyan, John A. (John Augustine)
PhilosophyChristian
Distributive Justice: The Right and Wrong of Our Present Distribution of Wealth
Ryan, John A. (John Augustine)
Economic history; Income distribution -- Moral and ethical aspects; Wealth -- Religious aspects
Perhaps the best known recent statement of the opinion that interest
is inevitable, appears in Professor Irving Fisher's "The Rate of
Interest."[144] While he does not assert explicitly that sufficient
capital would not be provided without interest, and even admits that
in certain circumstances interest might disappear, the general logic
and implications of his argument are decidedly against the supposition
that society could ever get along without interest. He lays such
stress upon the factor of "impatience," i.e., man's unwillingness to
wait for future goods, as to suggest strongly that other causes of
interest, and the number of savers free from "impatience," are quite
insignificant. Now, if "impatience" were the only cause of interest
the latter must continue as long as "impatience" continues; and if
practically all savers, actual and possible, are completely dominated
by "impatience" the abolition of interest would be socially
disastrous. However, neither of these assumptions is demonstrable. We
have just seen that the present rate of interest has other causes than
"impatience"; that a large proportion of savers insist upon getting
the present rate, not because they require it to offset their
"impatience," but simply because they can obtain it, and because they
prefer it to the lower rate. Therefore, the mere existence of the
present rate does not prove it to be necessary. By the same argument
it is evident that the existence of any interest does not demonstrate
the necessity of some interest. In the second place, the number of
savers, present and prospective, whose "impatience" is so weak as to
permit them to save without interest, is probably greater than the
average reader of Professor Fisher's pages is led to assume. The
question whether interest is necessary cannot be answered by reference
to the general fact of human "impatience"; it demands a preliminary
analysis of the extent to which "impatience" affects the different
classes of savers.
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