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Upvoting because, to be honest, the moving electrons/moving dollars analogy works really well for me, and especially I think that's a useful analogy. For a soc
by basilgohar 7y ago
Upvoting because, to be honest, the moving electrons/moving dollars analogy works really well for me, and especially I think that's a useful analogy. For a society, in general, dollars sitting idle in a bank account instead of being spent on something constructive or services where someone is getting paid for work or something of utility is being built/created are not, from my perspective, useful to that society. Sure, someone's balance sheet might be achieving larger-and-larger numbers, and that serves their own purposes, but not those of greater society.
- Anon1096 7y agoIf you think money is just sitting in a bank account then you misunderstand how the economy works. Money in a bank gets reinvested by the bank and funds loans, mortgages, and credit. The only money that isn't moving is dollars literally stuffed under a mattress and what the bank keeps on hand to fulfill reserve requirements.
- b_tterc_p 7y agoSort of. Banks want to loan out money. But when consumer spending drops, they loan out less. In a recession there is more risk, so it’s harder to find profitable loans to make. The money does get stuck.