markitect-main/examples/infospace-with-history/output/entities/prodigals-and-projectors.md

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

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