Friday, September 27, 2019

Got banking 2

(cont'd from yesterday's post)

Tala is not a non-profit charity. It's a business that must make profit to stay in business, so its banking services are not free. Customers must buy their services and pay for them.

Amylene Dingle, one of their customers, paid interest and a small fee for her first ($20) and subsequent loans. Like all business owners, she took a risk when she bet that people would want her product and that she could generate a profit of her own.  She was right, it was well worth it, and her family is much better off.


In a "free enterprise" or "free market" economic system, people like Amylene are free to do as she did. She is entitled to use her own intelligence, to act on her idea - and she's entitled to the rewards of her own work.

In socialism's "control or command economy," somebody in the government decides if she should be allowed to pursue her goal. And her business will never actually belong to her. Private ownership is abolished, and the business will belong to the collective which of course is run by the government.

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