Even if you were in a hypothetical society, why would people give up use of their wealth with nothing in return? If banks couldn't charge interest, people would just invest instead. Banks (in the ideal sense) do the same, loaning money out at interest and paying some to depositors.
Even if you were in a hypothetical society, why would people give up use of their wealth with nothing in return? If banks couldn't charge interest, people would just invest instead. Banks (in the ideal sense) do the same, loaning money out at interest and paying some to depositors.