Will negative interest rates lead to Marxism?

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2021-06-10 15:30:10

Why is it consistently declining? Probably a combination of better technology and increasingly more wealth/capital in the world…

There is a Marxist theory that the time for Communism would come when interest rates went to zero because the zero percent interest rate was a sign that capitalists no longer had any idea what to do with their money. And there were no good investments left, which is why the interest rates went to zero, and therefore the only thing to do at that point was re-distribute the capital. It doesn’t mean that zero-percent rates lead us to socialism, but I find it alarming that rates are as low as they are.

Eh, I think that’s over-narrating the fact that there’s just a ton of capital out there in the world. Wealth has increased tremendously over the last 100 and 500 years, but all our scarce resources have stayed about the same.

Capitalism has become a “ victim of its very success.” Yet I don’t know who the victims are. Let’s say interest rates go negative. Who’s the loser?