Monday, 26 March 2012

Fractional reserve banking is bad for capitalism

Definition of communism: The government stifles the work of good firms to prevent bad firms from failing.

If bad firms are prevented from failing (as with fractional reserve banking) then this is detrimental for the rest of the economy. Communism is bad for capitalism. Fractional reserve banking is communism.

The government hurts good firms by protecting the banks.

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