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

From: Philip Dunn <>
Date: Wed Jul 15 2009 - 19:15:43 EDT

On Wed, 2009-07-15 at 22:54 +0100, Paul wrote:

> Did you write that wiki page Philip?
> 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 Wed Jul 15 19:19:34 2009

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