Quote:
Originally Posted by CalledDownLight
what do you mean by +EV to society?
Meaning that society's resources are allocated efficiently. Example of a -EV loan:
Student is extended a loan to go to college
Student learns nothing useful
Student pays loan back after school (or doesn't pay it back, I think its irrelevant to my point)
In this case the capital extended to the student was not used to produce goods or services at a higher rate than he/she would have without the loan. It amounted to people passing money back and forth to each other.