Quote:
Originally Posted by aceventura3
Investment is different than spending. Investment leads to innovation, productivity gains, standard of living increases, increased tax bases, etc. Spending is current consumption. A farmer can spend $1,000 on a TV or the farmer can invest $1,000 in seed corn. We need investment. Investment will fuel employment. Employment will fuel current consumption. But, forgive me for yet another supply side argument - it is ingrained in my psyche.
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My point is that no one will invest unless there's a market. There's no need for innovation and productivity if not enough people are buying anything.
People aren't investing for a lack of money, they're not investing because sitting on the cash is safer at the moment.
What's the point of investing $1,000 in seed corn if you'll only have to dump the yield into a Third World market?