>>So having more customers is… bad? If it's coming at the expense of higher prices for building out new capital, yes. The market will naturally calibrate the

>>So having more customers is… bad? If it's coming at the expense of higher prices for building out new capital, yes. The market will naturally calibrate the amount of consumer spending for it to be optimal for long-term economic growth. If we artificially boost consumer spending at the expense of capital investment, we will hurt long-term economic growth. >>Where do you think cars get built? Resources that go to building cars at a factory are not going to building a new factory. >>Not really. The entire point of the article is that the available capital exceeds the available investment opportunities. The hypothesis is based on the fact that corporations are sitting on a lot of cash, which totally neglects to account for the huge growth in debt, and how cash reserves are important for absorbing economic shocks that can occur in over-leveraged financial systems.