4 ms·
s/communist/capitalist/ Capitalist economies must continually grow to be healthy. Savings which is not invested does not create growth. A healthy growth is a
by msellout 11y ago
s/communist/capitalist/
Capitalist economies must continually grow to be healthy. Savings which is not invested does not create growth.
A healthy growth is a stable, slow rate. If growth is too fast, an economy should stop investing to slow things down. If growth is too slow, an economy should invest more. Unfortunately, neither of those are natural actions. People like to invest more during fast growth and invest less during slow growth. Thus boom-and-bust.