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Agreed. Investment is the machine that moves the economy. Consumption is the natural by-product of people investing in their power to produce more value. When y
by josh33 16y ago
Agreed. Investment is the machine that moves the economy. Consumption is the natural by-product of people investing in their power to produce more value. When you produce value in the world, the world pays you for it and you are able to by what you want (miracle of exchange and currency).
I think you may have been down-voted because you forgot to mention that the investment you refer to is not investing in a 401k or S&P 500 fund. You refer to business spending on capital goods, new technology, entrepreneurship, and productivity. Retail demand grows with wealth. The worry shouldn't be on a future where we don't demand, as demand will always find new products to make scarce. We should rather worry that wealth will be redefined as having things, which will reduce a person's focus from producing to consuming. If we are all worried about consuming more and focus our effort and energy there, we'll stop focusing on producing and will then turn to financing our consumer goods (spending tomorrow's capital today).
- stretchwithme 16y agoI think I made it clear I was talking about investing in productive capacity. Why they down vote I leave for them to say. I think people know how much consumption is right for them and how much they wish to invest in their own capabilities. They balance these things all the time. So I don't worry about them. The problems start with government subsidizing consumption like owning bigger houses. Many people actually got deceived into thinking buying such houses was the way to make money. And everything not subsidized must get more expensive