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> If everyone hoards, and never spends, then the economy stalls and then recedes. Why are "savers" demonised as "hoarders"? Why should they be blamed for the
by bitcartel 14y ago
> If everyone hoards, and never spends, then the economy stalls and then recedes.
Why are "savers" demonised as "hoarders"?
Why should they be blamed for the structural problems of an economy too reliant upon debt-fueled consumer spending?
What's wrong with people saving for their future and not spending beyond their means?
- api 14y ago"What's wrong with people saving for their future and not spending beyond their means?" This is less profitable to the financial industry, and the financial industry finances nearly all research in the field of economics. It's difficult to get someone to comprehend something when their salary depends on them not comprehending it.
- chimeracoder 14y ago> What's wrong with people saving for their future and not spending beyond their means? Because there's a difference between saving money by putting it in a savings account and 'saving' money by hoarding currency and storing it under your mattress. The problem is that people are overloading the term "saving". In economics, savings == investment (this is an identity[0]). When you "save" by putting money in the bank, the identity self-adjusts in different ways from when you "save" by hoarding currency. [0] http://en.wikipedia.org/wiki/Savings_identity http://en.wikipedia.org/wiki/Savings_identity