Re: Socialism and the poor

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I agree that savings should be used as investment in production. BUT what do
you do with all that production? It has to be consumed as the last stage in
economic activity. What kind of economy would it be if everyone saved their
money and didn't buy the widgets that all that production capacity produced?
If producers didn't sell the roller blades they made, soon they couldn't pay
their employees, who would have no income and couldn't buy anything.

Consumer spending ALONE is not an economy...better?

Debt-based Investment in consumer spending is an abomination.

Consumer spending is what makes the whole thing work. I worked for many
years in a chemical plant that made an industrial chemical used as a
catalyst in plastics manufacture. When home building went flat, there was
less demand for plumbing pipes, less demand for PVC, and ultimately less
demand for the catalyst we manufactured to make that plastic. We had layoffs
because people far away weren't building houses.

Money can't be saved forever...savings finds its way back out.

But debt-financing a consumer economy is horrid. It's a recipe for
apocalypse.

I agree that over emphasis on consumer spending is not good and frugality is
good but no consumption means no economy. Walmart stores would be empty of
people if no one spent on goods, Walmart employees would be idle, and the
peasants in Honduras who make the clothes would be out of work as well plus
all the middlemen inbetween. Take care

Oh freaking well. We'd have less granite countertops, omg

Trav
--
Stanley L. Moore
"The belief in a supernatural
source of evil is not necessary;
men alone are quite capable
of every wickedness."
Joseph Conrad

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