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> Increasing investment today will indeed increase production in the future - that's the whole point. So you agree that for the investment to be worth it (and
by asgard1024 11y ago
> Increasing investment today will indeed increase production in the future - that's the whole point.
So you agree that for the investment to be worth it (and thus made), consumption in the future must increase (or at least appear that it will increase to the investor)? That was my point.
> The production is either consumed, invested, spent on government or exported.
I talked about money, not production. Money can be saved, or in today's world more likely, ran around in circles through the financial system, without ever causing more consumption to happen.
- yummyfajitas 11y agoNo, for the investment to be worth it the return needs to exceed the risk free rate. If your sole claim about money is that there needs to be a functioning monetary system so that the consumer can easily transfer value to the producer, I agree.