Quote:
Originally Posted by Undertoad
....If you reinvest money into a venture, it is creating things. If you invest the money in the market, it is being used by other people to create things. Even if you put money into a simple index fund, that money is in turn being used in the market, in scores of ways that are invisible to the layman. This creation is what builds our modern society. And if you take money out of the economy and put it under a mattress? That would lower prices.
Believe me, or take Econ 101.
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It was a long time ago, but I had good grades in two semesters of economics.
I don't dispute what you've said, above. I would offer that it doesn't matter whether one wealthy person does these things, or many less wealthy do them. One person can invest or spend $100,000, or 1000 people can invest or spend $100 each - the results will be the same.
09-18-2007, 06:09 PM
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