supply of credit and thus more funds to be invested by firms for investment. The paper shows that proponents of this theory …The paper presents a critique of loanable funds theory by using simple accounting relationships. It is shown that many … economists identify saving and the credit supply by interpreting the macroeconomic saving-investment identity as a budget …

investment for both borrowers and lenders. Today, this ethical justification of debt as an investment underlies the rhetoric of … investment, while finance has actually had the opposite effect of making consumer debt a necessity for the majority of Americans …. Taken together, these realities of debt today contradict the rhetoric of finance as investment and undermine the ethical …