RE: [OPE] Productive and unproductive labour in the financial sector

I don't see the problem. Those getting no interest are paying a
disguised charge calculated at the reference rate.

Bank workers are not paid out of "true" interest, but out of FISIM
revenue.

On Thu, 2009-07-16 at 11:28 +0100, Paul Cockshott wrote:
> But these are undefined numbers.
> Some depositors - those with current accounts for example get no interest,
> The rate paid by borrows is also a spectrum of values.
>
> -----Original Message-----
> From: ope-bounces@lists.csuchico.edu [mailto:ope-bounces@lists.csuchico.edu] On Behalf Of Philip Dunn
> Sent: 16 July 2009 00:16
> To: Outline on Political Economy mailing list
> Subject: Re: [OPE] Productive and unproductive labour in the financial sector
>
> On Wed, 2009-07-15 at 22:54 +0100, Paul wrote:
>
> >
> > Did you write that wiki page Philip?
> No.
> > The argument there seems remarkably unpersuasive. It admits that banking
> > labour is not fully paid for out of charges for transactional services (
> > clearing cheques etc ) and that it is supported out of interest.
>
> Not quite. The difference between the interest the bank pays to
> depositors and the interest it receives from borrowers is sales revenue.
> A reference rate of interest, at which no FISIM revenue arises, is the
> rate at which income is transferred from borrowers to depositors. The
> difference between interest at the reference rate and interest at the
> rate a depositor receives is expenditure for the depositor. Similarly,
> the difference between interest at the rate a borrower pays and interest
> at the reference rate is expenditure for the borrower.
>
> The "true" interest rate is the reference rate.
>

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Received on Thu Jul 16 15:18:19 2009