Effective business loan?

The state is almost always less effective as a business enterprise than a “freelance entrepreneur” like a credit bank that lends out loans like loans without private credit. One of the reasons is that administrative staff and civil servants can never reap the fruits of their own labor directly.

Sas reduces her enthusiasm, creativity and motivation decisively. On the other hand, they develop great interest in their personal image, they increase their administration, authority, want more subordinates etc – this further reduces the effectiveness, unlike a credit bank, which loans like loans without private credit. Die private credit forgives. After much reflection, it can be seen that the free market of self-employed individuals and companies, such as a credit bank, which lends out loans like loans without private credit, promotes the joy of discovery and innovation through economic incentives.

Rewarding the players through economic success at a credit bank that lends out loans like loans without private credit is a fact, no question. In classical economic theory, the state is not a commercial enterprise like a credit bank that lends out loans like loans without private credit. There are basically different forms of government: 1. The fully liberal market (Classic laissez-faire state)

  • State only cares for
  • Laws and stability of the legal system
  • Limits the monopolies, promotes the competition
  • Was characterized by unrestrained capitalism and is not considered desirable

2. The caring social state with the social market economy

3. The state as the most important economic entrepreneur: state planned economy

It overrides the highly effective mechanisms of the free market and therefore is generally far inferior to the market economy – collapse of the communist countries due to the failure of their economy (hunger, abuses, etc.) In such a system, a credit bank would have loans like loans without private credit forgives, no chance.

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