Adam Smith is considered to be the author of the concept of the “invisible hand”. Well, like the market is controlled by someone's invisible hand. The same concept is known in the formulation that each individual, acting in his own selfish interests, ultimately works for the common good, since he produces only the products that are in the greatest demand and which can be sold the most. Thus, the general welfare of the population grows. However, Adam Smith overlooked exactly what the individual is guided by in his own interests, and what exactly motives underlie his behavior. According to Adam Smith, this supreme someone is one-armed, like a slot machine. In fact, there are two hands. One hand is good, the other is evil.
What is guided by a person who does not live by the principles of good? Pride, envy, vanity, lust, gluttony. This is the second hand that guides people and society. To satisfy these needs, a person needs a lot of money. He is insatiable. You need to get a lot and quickly. Precisely - to receive. Get what he is shown in advertisements that cover cities and that are broadcast on TV channels.
Bag of dough. A new car. New apartment. A lot of tasty food. Beautiful rags. New TV set. New refrigerator. And so on. To get it quickly, you need to get it quickly somewhere What is organic growth? It is gradual. Can be fast if it meets some new need. Not necessarily bad or bad.
Projects that are needed by a common collective mind - they grow by themselves. No big money, no investor money, no crazy loans. A loan is the concept of money taken on a time basis on terms of repayment and payment. He has a different model. It boosts the economy. It allows the development of those products and projects for which the common collective consciousness does not want to give money. It allows you to make and buy things that a person doesn't really need. Look at the statistics of what people buy on credit.
NOT FIRST NECESSARIES. What, a fur coat, a car, a washing machine are the essentials? Of course not. This is what individuals see on television and what they are forced to regard as a must for a successful life. Luxury goods are becoming a commodity. Fake, Louis Vuitton. Like - I'm mine. What the hell are you if you buy a fake or a second-hand rag with a credit card, which you then shake over because of the brand. Vaughn, a group of shopaholics anonymous. Girls, looking for a Prada bag, used, but in a new state. Better free. Definitely the original. They do not understand that they are not their own either. That rich people don’t bother with expensive things and don’t polish their favorite bag every night. If a piece of clothing is polished and shaking over it, it means that it is the only one. First and last. It is normal to carry potatoes from the alphabet of taste in a botega veneta bag. This means that you have ten of these bags, and a normal bank account to buy the eleventh. Unless you're just a fairy who eats violets, or you don't care where the food comes from. A bag in order to walk with it, and not to pray for it.
The welfare of a society is the total value of all goods produced. In the case of the active development of lending, most of the benefits flow into the pockets of banks. Banks are stifling the real sector. Why? A person takes a consumer loan. Or a mortgage. Or a car loan.
What happens at this moment? He makes ONE large purchase. Then he pays for this purchase on credit - a part of the purchase price and interest. He spends most of his wealth on paying interest and other fees to banks. These payments are money that will never reach the real sector. Nothing will be bought with them. They will not pay for real goods. The general welfare will grow once at the time of purchase on credit, and then it will BE EXHAUSTED for several years. The bank will give the earned on interest to the next Murzilka, which also gets it. He will buy a credit apartment, and then he will not be able to buy sausages for himself, because the money will go to pay interest. Why is there such an urgent need to have your own home? I'll explain to you. Fucking institute of "propiska" ("propiska" in Russia means that you need to have a stamp inside your passport with the address of permanent residence, and in Russia only own property can be a such place). They haven't canceled her shit. There is no propiska - you cannot do anything. You are a powerless bum. Even if you have a hundred apartments and three houses on Rublevka, in Zastekolye you are a bum. There is no mass rental segment. And if there is - the price tag is prohibitive, "like for the service." Housing in the Glass MUST be your own. That there was a propiska.
The welfare of the nation from the real sector of the economy flows into the pocket of the banks. So that banks continue to take away the general welfare. Consumer lending is a completely diabolical invention that puts more than just a person into debt bondage. It has a catastrophic effect on the real sector. People receive a salary, more than half of which is paid for interest on their credit cards. Someone manages to pay off 50 thousand rubles on a Tinkoff bank credit card for two years.
Why do you think factories are being closed in the regions, and clothing markets and entertainment centers are growing on their sites? Elementary Watson. Development of sub-prime lending. The same credit cards from the first four retail banks that are sent out by mail. And which you just need to take and activate. Inappropriate needs. Other elegant ways to give you a loan at 100% per annum. No job because the real sector is dead - take a loan. Spend it in the clothing market and go there to work as a seller to return it.
Consumer loans are driving the wrong sectors of the economy. They disperse consumer banks. Money earned in the air and the general impoverishment of people. When people buy "for their" real goods, they all get rich together. When they take consumer goods, they all get rich once. But for the next few years, they will all be rapidly impoverished.
Do you think mortgages are specifically made available for what? To make those sectors of the economy that have a surplus of supply. Where it was built (on credit), but there is no one to sell it. The welfare of the nation from the real sector of the economy flows into the pocket of the banks. So that banks continue to take away the general welfare.
Adam Smith had clear spiritual vision problems. He didn't see something. The principle of goodness is one. If individuals strive for evil, and there are many of them, the collective mind is not guided by the principles of harmony and common good. He is guided by the same principles of quick one-time enrichment. "Stole - drank - to jail." Hence the growth of consumer lending and the cannibalization of the real sector by banks.