About the "smeared" economy

In the discussion on February 3, Alexander Bobrov proposed a model of a new economy without rent (a ban on the use of % from ownership than for).

There are several considerations that it was inconvenient for me, as a leading discussion, in order to give an opportunity to perform for other participants. Now I will do it with pleasure.

1. Even since Columbus, borrowed capital was used: ships on which the discoverer opened America did not belong to Columbus. If it were forbidden to use borrowed capital, then, I'm afraid, we would not open America so far))
2. A little later, already in our time it was proved that borrowed capital is always cheaper than its own. For this opening, the Nobel Prize for Economics was awarded. Borrowed capital allows the use of Levreig, which is significantly, ultimately, reduces costs. There are no visible reasons for which borrowed capital would be harmful. But for borrowed capital you need to pay. The cost of borrowed capital is % for its use.
3. Without the use of rent, other organizational and structural forms of modern labor would be impossible. Indeed, even the simplest types of cooperation suggest that “strangers” that do not directly belong directly to the cooperation participant will be used.
4. The ratio of “profitability - risks” is the most important driver of the development of the modern economy. The higher the risks, the higher the yield and vice versa. Using only equity can minimize risks, but reduces profitability. This means that only very “reliable”, but almost short -natured projects will be financed.
5. As Alexander rightly noticed, the economy without rent automatically leads to the formation of a society in which there will be no pensions. I think that pensions are a very important key competitive advantage for choosing a country of residence and country risks, in particular. A country without a pension will be unattractive for living, it will lose its elderly inhabitants who will leave it to receive pensions in other countries, and will come to this country only by retirement as tourists to marvel at how the life and unjust life for others)

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