No, I'm arguing with what you proposed, which is this:
> > People would still lend money to their friends and family. Stores would extend credit to customers because they want to make sales.
which is not in anyway a meaningful alternative to the actual credit market.
> Notice that the first two are the only ones that are actually good for anything.
Except that the first two only exist because of the third.
> But you don't actually need any lenders for that. If all you want is to create new money and give it to people, the government can create money by fiat and just hand it out to all citizens, or pay for government with it in lieu of taxing people. It's the same thing, there is just no interest.
It's the same thing, there is just no incentive whatsoever for the behavior to happen, so it reality it's not at all the same thing. This would cause massive devaluation of currency.