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Note that technically this is wrong at least if you're talking economics. In economics, what defines investment vs consumption is that the consumption value is
by BenoitEssiambre 5y ago
Note that technically this is wrong at least if you're talking economics. In economics, what defines investment vs consumption is that the consumption value is provided over time for investment instead of immediately for consumption: https://en.wikipedia.org/wiki/Investment_(macroeconomics) https://en.wikipedia.org/wiki/Investment_(macroeconomics)
Investment doesn't imply positive returns. A squirrel hiding nuts in a cache to survive the winter is investing instead of consuming, even though some of these nuts will spoil or be stolen making the returns negative.
Note that GDP equals consumption + investment (sometimes the government and export/import components are broken down in the equation).
- yarky 5y ago[inflation enters the chat] You can buy to consume today at a lower price than you likely will in the near future, assuming serious inflation on everything. So consuming today might be a good investment since you end up with a lower cost today for a product that you will buy soon anyway, the real return will depend on the realized inflation, which in some countries is not negligible.