Thursday, July 25, 2013

Steve Roth — Not Spending is Not Investment

I see this logical error so constantly, almost every day, that I feel the need to reiterate. Personal saving, virtuous and useful as it is for individuals, does not increase investment. This is what I call the “lump of money” fallacy (a.k.a. the loanable funds model)....
Asymptosis
Not Spending is Not Investment
Steve Roth

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