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Capital consumption just refers to capital depreciation. Reduced capital investment, and more specifically reduced efficient in capital investment doesn't neces
by learc83 6y ago
Capital consumption just refers to capital depreciation. Reduced capital investment, and more specifically reduced efficient in capital investment doesn't necessarily follow from increased consumer demand. Just stating that it does isn't an argument.
- nybble41 6y ago> Reduced capital investment, and more specifically reduced efficient in capital investment doesn't necessarily follow from increased consumer demand. Of course not. However, the original question was about the government redistributing resources from capital ("the wealthy") to consumers, which would have the direct effect of shifting the balance from capital investment to consumption.
- learc83 6y agoThe vast majority of consumer spending will go directly to companies who can invest the extra profit in whatever they want (and going down the chain, their suppliers can invest their extra profit). The percentage of savings to consumption can go down without the absolute value going down.