Why Are Businesses Competing to Lender Out Money?

With inflation, more people think why I need more money because prices are going up. But with deflation, the same logic would apply and then your wages would go down by a similar amount. In an inflationary world, that temptation is removed. The borrowers will see their wages rise over time. As long as they are paying off the interest rate, that $1,000 loan actually gets easier and easier to pay off with every year you have inflation.