Because low - risk investments return roughly 20 % on average in a country with 20 % nominal GDP growth,
financial repression means that the benefits of growth are unfairly distributed between savers (who get just the deposit rate, say 3 %), banks, who get the spread between the lending and the deposit rate (say 3.5 %) and the borrower, who gets everything else (13.5 % in this case,
assuming he takes little risk — even more if he takes risk).