by Smitty
AS an economic historian who has been studying American capitalism for 35 years, I’m going to let you in on the best-kept secret of the last century: private investment — that is, using business profits to increase productivity and output — doesn’t actually drive economic growth. Consumer debt and government spending do. Private investment isn’t even necessary to promote growth.
Is so gob-smackingly stupid that I don’t even remember anybody bothering with it. Click to view:
About the only thing I have to add to the fisk is that Livingston here–
We don’t need the traders and the C.E.O.’s and the analysts — the 1 percent — to collect and manage our savings. Instead, we consumers need to save less and spend more in the name of a better future. We don’t need to silence the ant, but we’d better start listening to the grasshopper.
–seems to be refuting The Man is Hiding the Stash Fallacy.
However, I don’t think that trading covetousness for surreality is what I’d call a big win.
I suspect Livingston be funded by consumer credit card companies and payday loan services.
And to paraphrase a famous quotation: “Idiot Livingston I presume? “
The fact that most of the money in your checking account if you’re not living paycheck to paycheck and all the money in your savings, money market or whatever account has actually been loaned to someone who stands a much higher chance of bankruptcy then the historical average is food for thought.
If he were a character in a horror movie he would meet his end impaled by hundreds of declined credit cards.
Nothing like a brisk morning run on the bank to see if your money is safe.
I found keeping money in a bank to be incompatible with my short position on civilization
Disqus is gaslighting me again.