But when you look from the perspective of the entrepreneur you see how this falls apart. The entrepreneur in a capitalist society has to borrow money to make purchases of capitol goods and that means the interest rate is a KEY factor in determining how much money entrepreneur will be lent. Some entrepreneur will have highly profitable ideas/opportunities some will have less, a whole spectrum will exist but only the entrepreneur with an expected return above the rate of interest will be funded.
I am wondering who is really entrepreneur in our economy, people with good ideas, or banks? It is banks with money who give loans who do all investing, not entrepreneurs. So I am wondering why banks, or in deflationary, savers with lots of money, can not themselves be entrepreneurs. This is like difference in customers borrowing to spend versus saving to spend.
Inflationary (pay = pay for loan)
buy --- buy --- buy --- buy --- buy --- buy
pay --- pay --- pay --- pay --- pay
Deflationary (pay = put money into saving)
buy --- buy --- buy --- buy --- buy
pay --- pay --- pay --- pay --- pay --- pay
At beginning there is difference, but after it is same buy and pay.