The economics of loans

Every well meaning Government today wants to give out loans. Forget governments all sorts of organizations want to give out loans. In fact there is invitation that go to and fro to join groups to raise money to give out as loans. Once upon a time high society organizations in India would go and dig borewells to feel good in remote villages and never bothered to check whether the wells served their purpose or not. It was a press event and a day out for well dressed rich women. Now that has all changed and it is about giving loans. I am at a loss at this trend. Like borewells it serves little purpose but is not even a press event. People are getting a lot more lazy I suppose.