I'm going to have to disagree. When depositors decide to save and defer consumption, entrepreneurs notice this (due to interest rate decreases) and can invest

I'm going to have to disagree. When depositors decide to save and defer consumption, entrepreneurs notice this (due to interest rate decreases) and can invest it to increase production. In general when the savings rate goes up, interest rates go down, and we see a shift from consumer goods to capital goods. Taking out loans to go on vacation, etc is not a good use of the money and will hurt someone. Taking a loan to invest in a business, fix a leak, etc will create value either by creating new opportunities or preventing catastrophic failure (e.g. a stitch in time saves nine). This is why pay day loans aren't evil, if for some reason you had an unexpected cost and won't be able to make a mortgage payment or truck payment the penalties could be quite severe, and thus a small loan to get over that bump is a fiscally rational choice - unfortunately many people borrow too much or too often and don't have a plan to live within their means.