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No, it can lead to asset growth (look at stock market and real estate returns) without any increase in consumption or investment.
by ummonk 7y ago
No, it can lead to asset growth (look at stock market and real estate returns) without any increase in consumption or investment.
- sokoloff 7y agoI think you misunderstood the main point of @whatshisface. If a company buys back shares from an existing investor (EI), EI now has cash and is likely to either spend that money (if they're a retiree selling shares for income) or reinvest that cash into some other investment. It's very unlikely that they're going to keep that new money in cash or a savings account.