European financial institutions could not easily lend to the workers, rendering labor immobile because of capital market imperfections (limitations that reduce the range of financial contracts that can be signed or honored); so to address this imperfection, the Virginia Company would allow laborers to borrow against their future earnings for a fixed number of years.
European financial institutions could not easily lend to the workers, rendering labor immobile because of capital market imperfections (limitations that reduce the range of financial contracts that can be signed or honored); so to address this imperfection, the Virginia Company would allow laborers to borrow against their future earnings for a fixed number of years.