I understood your comment, I'm sorry to say that I don't think you have yet absorbed what 'productivity' is or how 'fractional reserve' banking works.
Productivity isn't some adjective in your head that describes 'factories making stuff' vs. 'home buying'.
Fractional Reserve lending benefits the entire economy, lending is done for a variety of reasons and banks don't have the ability to (for the most part) define what is a 'better' kind of economic lending aka 'magic productivity'. They assume that demands on their assets will be borne out by supply and demand.
Yes, centralization of power is an issue, but it's not fractional reserve lending that is the driver of this.
Productivity isn't some adjective in your head that describes 'factories making stuff' vs. 'home buying'.
Fractional Reserve lending benefits the entire economy, lending is done for a variety of reasons and banks don't have the ability to (for the most part) define what is a 'better' kind of economic lending aka 'magic productivity'. They assume that demands on their assets will be borne out by supply and demand.
Yes, centralization of power is an issue, but it's not fractional reserve lending that is the driver of this.