Because having a functional business model is what defines whether the use of capital is good or not. Bad outcomes from low interest rates are all these layoffs from overstaffing, all the wasted human-years on blockchain & NFT garbage during 2021, VCs blowing money on obvious failures like Juicero, etc. These are not good uses of capital, and if they had to have a real business plan to get capital in the first place, it would not have been wasted.
I suppose it depends on what the alternative was for that capital. Sitting in an index fund wasn't really doing anything useful for society, but providing high paying tech jobs to dropbox employees was probably very useful to society. Especially when you consider all of the downstream impacts of those employees spending.
Similarly, I would ask if society gets more good out of transferring the wealth to crypto-bro's or from it sitting in relatively low yield investment vehicles? I would wager that the crypto bro's buying lambo's acted as a better economic stimulus than non-productive interest gathering.
Now if the choice had been between investing in "good" businesses vs "bad" businesses I would agree, but I don't think it was.
> I would ask if society gets more good out of transferring the wealth to crypto-bro's or from it sitting in relatively low yield investment vehicles?
I think rewarding people for dumping useful labor into a black hole is bad, yeah. If we're just handing it out, we could've split all that money to everyone equally and reaped much better rewards as a society (useful social services; more family stability; less poverty) than giving a few gambling addicts overpriced cars in return for nothing.
It feels like you're only thinking about it at a personal level.
From a higher level perspective, we didn't give them those cars, they bought them. And buying them provided tangible benefits to the people who made them and the companies that serviced them, etc. The money was freed from the dragon hoards of the unproductive and actually SPENT on something. Spending is useful. Hoarding isn't.
Could it have been better spent? Sure, but spending it at all is better than leaving it to rot collecting a few points interest without actually producing anything of value.
