pipe on Nostr: But, it also creates the boom-bust cycle because everyone growing apples has to also ...

But, it also creates the boom-bust cycle because everyone growing apples has to also become more efficient, to keep up with the debtor. Otherwise, he would repay his debt and then remain more efficient than them and sell his apples at a discount forever. He can "reap the rewards" of his debt and it was like an investment.

So you end up with a market with more, cheaper apples. And some orchards go bankrupt because they can't meet the new price.