Role of Government

WHY JAMES MADINSON USES CREDITORS AND DEBTORS AS RICH AND POOR, AND THE ROLE OF THE GOVERNMENT IN REGARDS TO MONEY LENDING A creditor is a party that has a claim to the service of a second party. It is a person or institution to whom money is owed. A debtor is an entity that owes a debt to another entity; the entity may be an individual, firm, a government, a company or other legal person. James Madison compares creditors and debtors to the rich and poor because the creditors are the parties which have enough money to lend and are the rich. Creditors give the money to the debtors with probable interest in return, and the rich parties are the parties expected to prevail, the creditors in those parties are the judges between themselves and the creditors determine what happens. Then James Madison compares the debtors to the poor because the debtors need money and they borrow it from the creditors and sometimes they the debtors fail to meet the financial obligation, and so do the poor , they lack material possessions or adequate supply of something specified, then the poor borrow from the parties who have them ( the rich). Madison purposed for a balance between the creditors and debtors, just like there is a balance between the rich and the poor. The role of the government in the lending of money should be to control the amount of money being given out to specific people. And also to assess the debtor if the person is able to pay back the amount being borrowed. The government shouldn’t be involved in lending of money if the money borrowed is not of great value. The government should just overshadow the parties incase both parties get out of