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Money doesn't disappear when you buy real estate. It goes to the person that sold you the real estate, and they can choose where to put that resulting capital.
by missedthecue 5y ago
Money doesn't disappear when you buy real estate. It goes to the person that sold you the real estate, and they can choose where to put that resulting capital.
- gowld 5y agoMoney isn't capital. Money represents capital. When they try to spend that windall money, in aggregate, it will cause inflation, and the money will be proven to represent less capital than previously assumed. The seller will thrive, but non-sellers will suffer higher prices.
- missedthecue 5y agoMy point is that one industry isn't starved because an allocator buys assets in a given asset class such as real estate. The money doesn't disappear, it keeps moving.
- micromacrofoot 5y agoyou mean to tell me this is some kind of economy?
- missedthecue 5y agoIncome = expenditure is one of the most intuitive but least grasped concepts of introductory economics. It's interesting to me that this is the case.