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0 pointslottin2y ago0 comments

Maybe 'spending' is a better word, yes. However, 'consumption' isn't entirely inaccurate. Investment is the production of capital goods, and the production of capital goods involves consumption.

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lisper2y ago

Well, yeah, you can't create something from nothing. But that's not exactly a deep insight. All economic activity involves consumption if you want to cast the net that broadly.

The point is:

> The idea that people need to be encouraged to consume (consumption being the opposite of saving) I don't think is supported by economic theory.

People absolutely need to be encouraged to be productive. That's the whole point of an economy, to encourage people to produce things that others want in exchange for other people producing things that they want.

Honestly, how could anyone possibly not understand that?

lottinOP2y ago

I understand it fine, I just don't agree with it.

The whole point of an economy is NOT to encourage people to produce things. The point of producing is to satisfy a demand for consumption, and individuals choose their level of consumption according to their preferences and budget constraints. They don't need to be encouraged to consume. That doesn't make any sense.

lisper2y ago

> The whole point of an economy is NOT to encourage people to produce things.

I guess we'll just have to agree to disagree about that. Maybe things are different where you are, but where I live most people expect to be compensated for their labor, and investors expect at least a shot at a positive ROI. But if you want to work for free, by no means allow me to discourage you.

> They don't need to be encouraged to consume. That doesn't make any sense.

You're right about that. But that was not what I said. I said that they needed to be encouraged to produce, not to consume.

> I understand it fine,

Manifestly not. You couldn't even write three sentences without losing the plot.

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lisper2y ago

Well, yeah, you can't create something from nothing. But that's not exactly a deep insight. All economic activity involves consumption if you want to cast the net that broadly.

The point is:

> The idea that people need to be encouraged to consume (consumption being the opposite of saving) I don't think is supported by economic theory.

Honestly, how could anyone possibly not understand that?

lottinOP2y ago

I understand it fine, I just don't agree with it.

lisper2y ago

> The whole point of an economy is NOT to encourage people to produce things.

> They don't need to be encouraged to consume. That doesn't make any sense.

You're right about that. But that was not what I said. I said that they needed to be encouraged to produce, not to consume.

> I understand it fine,

Manifestly not. You couldn't even write three sentences without losing the plot.

1 more reply

j / k navigate · click thread line to collapse