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Consumption drives investment. There's always demand. Savings fund investment. The more savings there are, the cheaper it is to find funds for investing in a p
by skylan_q 11y ago
Consumption drives investment.
There's always demand.
Savings fund investment. The more savings there are, the cheaper it is to find funds for investing in a project. The cheaper the capital expenditure, the easier it is to turn a profit.
Or are you talking about the paradox of thrift?
- vkou 11y agoThe first thing you do before investing in a new market is asking the question: "What's the return on this? Will anyone buy the things I'm selling? Are the margins positive?" Having a lot of money searching for an investment won't do you any good when your widget factories don't have customers. Yes, borrowing money to build the factory will be cheap - but you still expect the factory to produce a return on your investment!