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Productive investment means spending cash on something, like property, R&D, or plant and equipment. I don't see how this is the same as hoarding cash. There i

• danenania 16y ago
  "Productive investment means spending cash on something, like property, R&D, or plant and equipment. I don't see how this is the same as hoarding cash." Exactly. No one actually hoards cash. Why would they? There is an enormous incentive to make idle money useful. But the greater point is: even if they do, so what? The money will be utilized at some point. That's what it's for. Why is it better used now than in the future? What is the 'correct' ratio of savings to immediate consumption? Given that you're unlikely to provide a convincing answer to this, wouldn't it be reasonable to let the owners of the money determine its allocation? "There is a psychology that iPads, and to an even greater extent iPhones, are a short life time product. So their price in a couple of years does not matter. Buying one now will not prevent you from buying one at the cheaper price in a couple of years as well." This is because the iPad's price falls and its quality increases. If each new iPad were twice the cost for the same performance, I don't think the lines at the Apple Store would get quite as long.