Certainly, there are efficient capital allocation mechanisms in place today to pool savings and channel them into ventures to make things faster, cheaper, safer and better. The stock and bond markets have paved the way for ingenuity to turn into greater productivity. People are willing to forfeit interest on savings and are making bets in these markets hoping for asset price gains.

But small business creation often requires bank or credit card loans or a second mortgage on a property previously owned. This is where debt-finance comes into play.

By nature of the time delay between R and D, the money hits the street first before productivity gains are realized. That is inflationary first then deflationary second as productivity grows.