I get your point OP but I am very curious. Is your example realistic in your country? Man A's loan interest is 3.47% monthly while Man B's is 2.88% monthly. So these figures are normal loan interests in Nigeria? In my country, banks' interests are around 2% monthly. But I also heard that in very rich countries, personal loan interests are very low.
Somewhat. Although, there's no guarantee of it. We have to remember that assets generally depreciate in value because they get dings, scratches or just degrade with time. So, selling a second hand asset is usually more difficult than selling a new. Obviously, this sort of ignores collectors items, but cars for example are generally considered to have already lost a few k on their price as soon as you drive them off the forecourt.
Well, I assume OP's tricycle example is utilized for transportation services. Tricycles are common means of transportation in some countries, especially in rural areas and outskirts of cities. So it will be income generating. If I am right, then Man A benefits well since he is already earning income for a year.
I do not agree with the idea that borrowers are the ones who gain from this, only a few borrowers who know very well what they are doing and who have a great capacity for self-control do so.
In other financial threads I commented it: it is the debate of which system is better to improve your financial situation, Robert Kiyosaki's or Dave Ramsey's system.
The former advocates going into debt to acquire financial assets, mainly RE and the latter advocates getting rid of all debt and avoiding debt like the plague.
Mathematically for a robot or an AI, it would be Robert Kiyosaki's but in real life for most people it's Dave Ramsey's.
Perfectly said. And personally, I also prefer Dave Ramsey's system. Financial assets are accompanied by risks though just like what happened before in the US when its real-estate market collapsed. But I am also a huge believer in real estate and raw lands, only because my country is small with over 100 hundred million population.