From: "Timothy C. May" <tcmay@got.net>
Date: Fri, 1 Nov 1996 12:36:40 -0800 (PST)
To: cypherpunks@toad.com
Subject: Moneychangers and Shylocks
Message-ID: <v03007800aea00d0732bc@[207.167.93.63]>
MIME-Version: 1.0
Content-Type: text/plain



There've been a couple of "you must be trolling us" responses to my point
about the First World spending money in the Third World not being
exploitation ("and we give them worthless trinkets like penicillin,
schools, and roads").

I happen to believe economic development is a positive good. Were I living
in a shantytown or favelo on the outskirts of some Third World town, I
would want at least the _chance_ of eventually having running water,
electricity, health care, and opportunity for me and my family, Arguing
that native peoples were better off before the arrival of Europeans is
fatuous nonsense--you can't go home again.

Further, many of the leftist critiques of "moneylending as exploitation"
are similar to past (and current) demonizations of moneychangers,
moneylenders, shylocks, and other assorted stereotypes.

I don't favor nationalistic lending and borrowing policies, which, for
example, involve some central government borrowing money, sending the
borrowed funds to personal Swiss bank accounts, and then sticking the
nominal taxpayers with the debt. Nothing I have said here endorses this.

But much lending is useful. It's the way factories get built, the way
things get done.

Much of the criticism of "moneylenders" is closely related, if you think
about it, to criticism of "money launderers." Cypherpunks should relish the
rise of new mechanisms for money laundering, moneylending, tax evasion, etc.

I took the "Wired" quote about Walter Wriston "sounding like a cypherpunk"
to represent this new view, in explicit contrast to his earlier views when
he headed Citibank and they had a more statist approach.

Your mileage may vary, but tired homilies about lending being exploitation
are not very useful in this day and age.

--Tim May

"The government announcement is disastrous," said Jim Bidzos,.."We warned IBM
that the National Security Agency would try to twist their technology."
[NYT, 1996-10-02]
We got computers, we're tapping phone lines, I know that that ain't allowed.
---------:---------:---------:---------:---------:---------:---------:----
Timothy C. May              | Crypto Anarchy: encryption, digital money,
tcmay@got.net  408-728-0152 | anonymous networks, digital pseudonyms, zero
W.A.S.T.E.: Corralitos, CA  | knowledge, reputations, information markets,
Higher Power: 2^1,257,787-1 | black markets, collapse of governments.
"National borders aren't even speed bumps on the information superhighway."