But loans are also a critical way to get leverage. You buy some equipment for your farm up front so that you can produce more food immediately. If you have to s

But loans are also a critical way to get leverage. You buy some equipment for your farm up front so that you can produce more food immediately. If you have to save up for a year to buy that equipment, then you're far behind where you are if you buy it with a loan. This is why most people buy houses with a mortgage: because they'd rather live in a house today and pay it off for 30 years, than save up for 30 years (while living where?) and buy it in cash at the end. Lending is generally a good thing. I'm not sure what to do about the cost of lending to the poor. Perhaps there should be government aid of some kind to help them find jobs or start a business. Ultimately, every person needs to make the decision for themselves about whether it's better to save and buy the things they need in cash, or take a loan to buy those things now.