22 lines
699 B
Markdown
22 lines
699 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-04 -->
|
|
|
|
# Prodigals and Projectors
|
|
|
|
## Definition
|
|
|
|
Economic actors who are willing to pay extremely high interest rates for borrowed capital. Prodigals seek funds for immediate consumption, while projectors pursue speculative ventures with uncertain returns. Both represent economically risky borrowers.
|
|
|
|
## Source Chapter
|
|
|
|
Book II, Chapter 4
|
|
|
|
## Context
|
|
|
|
Smith argues that when legal interest rates are set too high, capital flows toward these risky borrowers rather than to sober, productive enterprises, thereby harming the overall economy.
|
|
|
|
## Economic Domain
|
|
|
|
Distribution
|
|
|
|
---
|