DonFerrari said:
Yes I know how bank make money. He didn't make a loan that is the point you didn't understand. He just entered the red on his own account paying obscene interest on it. He didn't picked a lot of money as well. He couldn't pay back the 10k USD, if his business didn't really take off in 2 month he would go bankrupt totally. For you to have an idea he had to take the debt because his partner dropped from the risk on the week prior to it, he had to sell his old car. So unless we are talking about homeless that have nothing on them (which in developed countries case is the very very very minority of the population) basically no one can say they can't start a business because they don't have money. They may not have the courage, knowledge, insight, etc, but money per see isn't the biggest detrigent. Such is a fact that in Brazil most business are very small and with very little capital. On the immigration that could be the case today, but those studies show things like 3 generations so it is like accounting immigrants that came 50 years ago and how their grandson are doing. |
How much money would he have to have in order to be allowed to go 10k in the hole? I can only go $100 in the hole, no way would my bank let me be over $10,000 in the red. And you say that he would have gone bankrupt, do you know what causes bankruptcy? A lack of money. So, the choice between not starting a company and not having a company or starting a company and going bankrupt and thus not having money doesn't seem like 2 very favourable choices.
Also, I didn't deny that it was counting grandchildren of immigrants, but the financial status of your parents have a huge affect on your own financial status:
