Yesterday I left out one huge pool of usury-free credit extended: payroll. Back in the day people were often paid monthly, because they settled up their tabs around town monthly. But whether you are paid bi weekly, weekly or end of the day for that matter, an employee extends his employer credit (pay owed) for the length of the pay period.
So when I said
Along with the artists, those extending credit as laborers who actually produce goods and services go the whole economic system kick-started.
Prediction: pay period begin to elongate as people realize the longer they wait for their money the harder the currency in which they are paid.
Feel free to forward this by email to three of your friends.
So when I said
So woodsmen fell oak trees, who sell to saw mills that create staves, which are sold to coopers who make barrels, and in turn are sold to breweries who fill them with water, barley and hops, who in turn sell them to pubs. Every step of the way each level gave the next time to pay, extended credit at no interest. At the end of the day the woodsman, miller, cooper and brewmaster gather at the pub and have a beer. At the end of the month they pay their tab, and the real bills are successively extinguished all the way back. Mostly credit in this system, the free market.Add in the "float" of all those employees and contractors nationwide, adding daily the money due them for work, for however many days of the pay period, as credit extended to the employers, the businesses.
Who went first? Who extended credit? The workers in pre-history, as agriculture spread, the workers agreed to share produce with a guitar player to play and sing as the others worked. Artists are the only people who create something of value which does not require extinguishing something before or after. This practice of supporting artists to make life better introduced the concept of credit, and from there it advanced division of labor, innovation, specialization, and an economy.
Along with the artists, those extending credit as laborers who actually produce goods and services go the whole economic system kick-started.
Prediction: pay period begin to elongate as people realize the longer they wait for their money the harder the currency in which they are paid.
Feel free to forward this by email to three of your friends.
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