Assume that the borrower intends to repay the loan; the question then becomes “Is it better to have [thing I can buy] right now than to have [more things I could buy later] instead?” For major capital investments, like houses, it’s reasonable to say yes. For things like consumers who keep constant payday loans but spend their money on things that they don’t really want, it is less reasonable.
It’s still reasonable to exclude ‘money pumps’ that require a minimum time to elapse, because the truest form of money pump is a series of exchanges that end up strictly worse that would all be accepted at the same time or in rapid series.
Assume that the borrower intends to repay the loan; the question then becomes “Is it better to have [thing I can buy] right now than to have [more things I could buy later] instead?” For major capital investments, like houses, it’s reasonable to say yes. For things like consumers who keep constant payday loans but spend their money on things that they don’t really want, it is less reasonable.
It’s still reasonable to exclude ‘money pumps’ that require a minimum time to elapse, because the truest form of money pump is a series of exchanges that end up strictly worse that would all be accepted at the same time or in rapid series.