“Definition of ‘Self-Liquidating Loan’
A type of short- or intermediate-term credit that is repaid with money generated by the assets it is used to purchase. The repayment schedule and maturity of a self-liquidating loan are designed to coincide with the timing of the assets’ income generation. These loans are intended to finance purchases that will quickly and reliably generate cash.”
As for GDP, I’m not a fan of using it as a measurement of economic health. GDP that is based primarily on consumption, as opposed to production, is not a particularly good thing, IMHO.
I would also add that I’m not a fan of a debt-based monetary system. Not exactly sure about all of the potential negatives (I’m sure there are more than I can think of at the moment), but I’d rather see the government make zero-interest loans to businesses for expansion, etc.; to offset the fairly constant growth, taxes would be used to shrink the supply of money when necessary.
Or, we could have a system where the government literally prints money to match potential productivity and population growth (tax to shrink). It would probably be unwieldy, but with computing power the way it is, it might be getting easier going forward.
