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To: pierrem15

“penalize consumption and encourage savings to assist industry and recapitalize their economies.”

Except penalizing consumption hurts capitalization. It is the one thing socialists fail to understand. Profits capitalize, savings do not. It is the flow of money that makes for capitalization, not stagnate money.


65 posted on 04/07/2025 4:27:02 PM PDT by CodeToad
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To: CodeToad

The Germans at least gain capital from export profits as does China, and high savings makes capital cheaper to borrow and more profitable when invested in business than simply collecting interest.


71 posted on 04/07/2025 5:19:29 PM PDT by pierrem15 ("Massacrez-les, car le seigneur connait les siens" )
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To: CodeToad

I would add that many of these policies came out of the Bretton Woods era, when oil and other imports had to paid in gold. So sustained large-scale trade deficits were impossible.


73 posted on 04/07/2025 5:21:31 PM PDT by pierrem15 ("Massacrez-les, car le seigneur connait les siens" )
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