3 ms·
In an economy where companies prefer to invest in R&D with credit and buy back stock, purchasing equities seems less beneficial than stimulating demand by just
by AlexandrB 5y ago
In an economy where companies prefer to invest in R&D with credit and buy back stock, purchasing equities seems less beneficial than stimulating demand by just buying stuff.
- wyager 5y ago“Stimulating demand” is nonsense - applied Broken Window Fallacy. The net effect of equity investment is to increase the amount of capital targeted towards the production of capital goods; i.e. deferring consumption makes humanity richer in the long term.