a loan is predicated on the idea that the loaned money will be invested in wealth producing ventures, enabling a payback of principle + interest later. this is counter to the digging holes and filling them in bit, unless you plan on heavily taxing anyone who took assistance later on to make up for it. in which case again, why make them dig holes?

in the other case, where investment is made in a wealth producing venture, why is government needed? the only reason money isn't available for sound investment will be due to malinvestment brought about by shitty incentives in the first place.

also, WRT transferring future wealth to the present:http://unqualified-reservations.blogspot.com/2008/09/maturit...