That “Nobel prize winning author” has no notion of Economics. His training was probably in Finance and in Business. That is not Economics. In the real world saving IS investment. It is the only way for there to be actual as opposed to apparent and false growth of the economy. Money to finance growth must come from money saved, not consumed. Inflationary “espansion”
is the attempt to create assets out of nothing. Only God can do that. “Growth” based on borrowed money that is created out of nothing rather than grown by savings is illusory and is accompanied by rising prices so it is not expansion at all. At best it is displacement of some goods and services by others and more likely constitutes real contraction of the Economy because it adds to debt. Things must level out at some point. An inflationary “expansion” tends to even out abruptly and catastrophically.
Since most people are in debt, saving and paying down debt is certainly better than financial losses incurred by lenders via bankruptcy and loan settlements.
As for “go into debt to prop up the economy”, many national governments went into more debt since 2008 to prop up the economy and rev things up. The end result is tepid growth, now a decline again if not deflation, and higher debt service payments.
Everything the gov is doing is wrong to save anything but Wall Street and corporate profits.
As for the dangers of “oversaving” see Japan’s struggles to reignite their economy when people wouldn’t spend.
Ok so spend more, go into massive debt, borrow money out the wazoo and live like royalty. Works for the Federal Govt.
Spend EVERYTHING YOU HAVE ... we need help for this economy!
Saving is investing. Also bank deposits do not just sit there they are invested too
More flak from the “spend your way to prosperity” idiots, just like we heard right before the crash of ‘08.
People confuse Federal Reserve money printing and debt monetization as saving
Savings and financial security is good for the Elites. Everyone else should march into debt slavery like good little boys and girls. His positions seem entirely consistent for a Yale Elite.
Let me add a couple more.
EAST is WEST
UP is DOWN
Obama is NOT a SOCIALIST. /s
I’m doing my part!
The worse it is--the better it is for us, comrades.
Mr. Madoff agrees that the “golden age of investing” is over.
That's two strikes right there.
The idiot says, as the S&P, Nasdaq and Russell 2000 are at all-time highs.