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Originally Posted by filtherton
Financial wealth is created via consumption.
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This is incorrect. In short order i can think of so many examples, but I assume none will change your view on this. Perhaps, the key point is that "financial wealth" is a concept with no real meaning - what is real is the measurement of true living standards.
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Current economic problems are rooted in a lack of consumption, not a lack of unallocated capital. The wealthy are having a rough go of it because non-wealthy folks can't afford to consume enough to justify more investment.
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Look at this:
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U.S. companies are sitting on nearly $2 trillion in cash and other liquid assets - that's according to The Wall Street Journal.
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U.S. Companies Sitting On $2 Trillion In Liquid Assets : NPR
When business puts this money to work through investing in the future the recession will end. The best thing government can do is to reduce uncertainty in the market.