Interest compounds geometrically and wages grow linearly. It’s not advanced math to realize the end state of usury is a rent-seeking class that owns basically everything, at least until the political unrest gets to the hot stage.
Historically, intelligent elites have permitted safety valves like bankruptcy and even jubilees. While this does reduce the nominal wealth of the owner class, it has no actual effect on their real wealth since they still own plenty of real assets that can be used to start the next round of interest based rent-seeking. Unfortunately our present day elites present us with evidence that they plan to run the system into the ground and then escape to five star bunkers in a New Zealand. I guess we’ll see how that works out.
Inflation is not a net change in pay. If real wages grew at say 1% compounded annually, over the last 2,000 years salaries would have increased by over 400,000,000x.
In the end, wage increases are far from geometric growth.
Historically, intelligent elites have permitted safety valves like bankruptcy and even jubilees. While this does reduce the nominal wealth of the owner class, it has no actual effect on their real wealth since they still own plenty of real assets that can be used to start the next round of interest based rent-seeking. Unfortunately our present day elites present us with evidence that they plan to run the system into the ground and then escape to five star bunkers in a New Zealand. I guess we’ll see how that works out.