[geysersam]

So if no one got those loans, what would have happened to the resources they bought? What would've happened to the resources that went into building the widget making machine? What would have happened to the operator employees? Would they've disappeared? Most likely they would've become available to another investor who did not get the loan but also wanted to build a widget making machine.

Did the loan actually increase economic growth? I think the only reasonable answer is: Yes, if the bank issuing the loan had a better idea than the market about the future profitability of the investment. However, that doesn't seem very likely to me.