In this world, there are two types of people: one that have money, and the other that don’t have money. The less fortunate ones spend their lives trying to work hard in making enough money to fulfill the necessities of life, whereas the lucky ones try and make more of their existing money so that they can enjoy the maximum luxuries of life. However, both the types are dependent on each other, the poor won’t find any work unless the rich provide them the opportunity, and the rich won’t be able to live the luxurious life they want unless the poor are there to do the dirty work for them.
Therefore, to carry out the cycle of life, both of them keep on inventing new ways and ideas to support the other. Once, the poor, wanting to improve their quality of life ask the rich for a loan, so that they may be able to earn a good living by acquiring a small piece of land and supporting themselves. The rich, seeking the opportunity to earn more wealth, agree to grant the loan on the condition that a certain amount of interest will be paid to them, and for assurance, they will keep the valuable asset, i.e. the land that the poor buys through their money as a possession until the poor pays him back.
The rich found this an attractive deal as they got a fixed amount of payback, and were the owner of the land too, so they were quite happy. The poor on the other hand, started to work harder and were happy that they now had better money and some land to call their own too. The system worked great for both of them and the rich decided to expand their new business and get more poor people to take loans and in return the rich ones became richer and the owner of greater valuables and lands.
Everything was going great, and everyone was happy, but happiness doesn’t last forever. As all the poor people started taking loans and started doing some kind of work on the land acquired by the loan, competition increased, and thus their profits declined. The poor went back to their old condition and thus were unable to pay the rich his interest. The rich, not getting any money, decided to sell the lands that they had kept as a possession for assurance to earn back the money.
But the problem was: no one was there to buy the land! The downfall had engulfed everyone, and no on was willing to invest in land again. The rich, frustrated and near to becoming the poor themselves, had to sell the land for very little amount.
At the end, the rich lost everything they had because they were in the lending industry and not in the real estate business. And this is the same reason that banks are not willing to lend to those that have low income; banks don’t want to acquire their land to resell, as it is not their business.
