Libertarian Thread #2: We Shall Never Die!

JJLehto wrote: I think I've mentioned this before, but there have been some alternate ideas floating around in my head. Like use of micro loaning. I'd be ok with that replacing a good bit of welfare, (there should still be some of course!) It's something I would need to really look into and think about but yeah.

Equality 7-2521 wrote: JJLehto wrote: I think I've mentioned this before, but there have been some alternate ideas floating around in my head. Like use of micro loaning. I'd be ok with that replacing a good bit of welfare, (there should still be some of course!) It's something I would need to really look into and think about but yeah. What do you mean by micro loaning?

Edited by Padraic - January 26 2011 at 11:52

Of course I was only joshing you. Especially since Lenin's idea may have been a spectacular failure....
If you ever headed a benevolent dictatorship all hope in humanity is lost.


Micro loaning

It's a concept I don't know much about, (so please forgive me) but I believe it involved banks giving relatively small loans to the poor. The idea was hoping they could use it to spur some local endeavors.

Supposedly was thought of after someone in Bangladesh was asked for a few dollars, and that person later found them, said they used it to start a small thing, and returned the money to him.

It has worked surprisingly well in poor countries, not sure if applicable in the US/Industrial countries but I'm intrigued by it.


Edited by JJLehto - January 26 2011 at 11:57

Equality 7-2521 wrote: Padraic wrote: Equality 7-2521 wrote: JJLehto wrote: I think I've mentioned this before, but there have been some alternate ideas floating around in my head. Like use of micro loaning. I'd be ok with that replacing a good bit of welfare, (there should still be some of course!) It's something I would need to really look into and think about but yeah. What do you mean by micro loaning? http://en.wikipedia.org/wiki/Microcredit You can participate in these activities using something like Kiva. Sounds interesting. Amazing how the market 'thinks' of things like this. I would like to see more of the mathematics of it. On the surface it seems crazy, unpredictable, and a poor device for making a profit.

As I say a few posts down...it has supposedly been very successful, much more so than anyone predicted.
Obligatory: I don't view this as out for profit but to help, BUT if we could do both...and eliminate a good amount of that bulky welfare, I could be on board.

Yes, I said it.

Equality 7-2521 wrote: Well if you're not making loans for profit, it's not different than charity.

I'm just talking in theory, of course it makes profit.
It has too, otherwise would it continue to exist?

My only problem is I'm not sure if it would work on a large scale in the US. I do think it's use could be expanded though. Go from there?

What about loan sharks? Would a regulation-free world generate more of them? Or the market will eventually eliminate them? In a way they provide a service, though their means of collecting money are quite.. illegitimate to say the least. 

Equality 7-2521 wrote: The T wrote: JJLehto wrote: Equality 7-2521 wrote: [EDIT: Two math students actually showed a stable equilibrium existed in a Zombie apocalypse scenario, but they made some unrealistic assumptions for the model that made that so.] Just to make sure this got it's deserved attention Bump.  Though this scenario is not as crazy as you might think... Just give free 3D TVS and glasses to everyone and you'll achieve it The paper is here. It's actually very readable for the non-math guy. They solve some non-trivial Jacobians, but you can skip over that. You can really skip over all the math and just read the assumptions and results.

The T wrote: What about loan sharks? Would a regulation-free world generate more of them? Or the market will eventually eliminate them? In a way they provide a service, though their means of collecting money are quite.. illegitimate to say the least.

Padraic wrote: JJLehto wrote: Equality 7-2521 wrote: Well if you're not making loans for profit, it's not different than charity. I'm just talking in theory, of course it makes profit. It has too, otherwise would it continue to exist? It's because it's loaning such small amounts that people can treat it like charity, and the profit motive gets obscured.  If I loan out $20 to someone in Bangladesh and never see that money back, I just view it as charity and write it off. If someone needs $100,000 you can be damn sure their credit risk will be assiduously scrutinized by any possible lender.

Yes, but no loan of that amount, or close to it, would ever be made.


Please do look into it Pat, as will I (I'm sure you'll do a better job though).
I really like this idea on paper but seems a bit "too good to be true"


Edited by JJLehto - January 26 2011 at 12:13

Equality 7-2521 wrote: The T wrote: What about loan sharks? Would a regulation-free world generate more of them? Or the market will eventually eliminate them? In a way they provide a service, though their means of collecting money are quite.. illegitimate to say the least.  They would still exist. They provide a valuable service, though of course their means of collection can be illegal.