Lending money is not transferring wealth, nor is it creating wealth. It nets out to zero.
This is clear when one does accounting. Accounting is based on the idea that (Equity = Assets - Liabilities). When one takes out a loan, the assets go up by the amount of the loan, and the liabilities also go up by the amount of the loan. The Equity stays the same. That this balances out is literally called "balancing the books".
BTW, banks are happy to lend out money to people that have a track record of paying it back. This includes poor people. Poor people have credit cards, too, which is how they borrow money.
This part is true, and the folks who equate new borrowings with income are liable to do some real damage if anybody ever listens to them.
Totally and utterly wrong, a complete misunderstanding of capitalism
Let me explain.
Access to capital is key. If you have it you can do business, if you do not you cannot, in general terms
There is more than one way to access capital, debt is very common.
And to get rich you have to do business
So if you are already rich getting more money, in a free market, is easier than getting started, in a free market
That is the point, and one small example,e. This pattern repeates o er and over. Once you have money getting more money is much easier than getting the first money
So in free markets the wealth divides tend to increase.
This is very elementary, stage II economics
I don't know who you're writing this to. You're not addressing any point I brought up.
> the folks who equate new borrowings with income