the bank can lend money to let people buy what they need. so who should the bank give money to if they can only choose one person?
if we have a situation where out of four people who need the bank to loan them money:
1. a person who wants to start a bussines selling cars(jed)
2. a person who needs to buy a new watch(sarah)
3. a person who wants to start a charity for sufferagetes(molly)
4. a person who wants to buy a beautiful home for their family.(daniel)
and we can only pick one person, who would you pick? putting myself in the position of a banker, i would think carefully about who to give the money to. in this sort of situation, i would lend money to the person who wants to start a bussiness. If we give Jed the money he needs to buy cars for his bussiness, then he can those cars for a higher price (which is the way all people do it) giving him more profit. then the taxes he pays goes to the government/bank, so we will get profit too. then we will have made more money because jed made profit out of selling his cars, which would make taxes higher, and we could use that money to help the others out others. but lets think another way.
.sarah had her watch stolen last week.
.molly has never had experience handling a charity.
.daniel has a lot of money already.
if sarah has not got a watch, then she could use her phone, look on her computer screen at work or ask the time. thats money saved. But if she dosent have a phone or work with a computer, or is to shy to ask, (and that's why she is asking for a loan) then we can use a small amount of Jed's taxes to give to Sarah. If molly has never had experience in charity work, then giving her money wouldn't be smart. she could spend it on things for charity, but what if it came to waste? we would loose a lot money. it would be more mature to use our money to give it to well experienced charity handler who would know what to with it withought making mistakes. Then, if daniel has lots of money already, he could buy a normal house for the money he has got. lending him money just so he could buy a beautiful house would first of all be a waste of the bank's money and would also be unnecesary because he could by a different beautiful house for the money he already has.
Being a banker is way harder than it seems, and you should know how to deal in a situation like this one. so try and put yourself in the position of a banker for a few minutes and you will realise how important this job is, and how hard it is to make everyone happy in this world. who would you pick as the person YOU would lend money to? would it be jed, like i have chosen, or somebody completely different? please share your thoughts.