Investment vs. Comsumption 2


More investment vs. consumption examples.

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22 Comments.

  1. Best video to show to pretentious/egotistic men and women (and children).

    Although I guess you can claim that the dancers provide entertainment, allow you to relax and even make you more productive at work.

    What do you guys think?

  2. MsLesleydavis

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  3. What does religion have to do with this video?

  4. The equilibrium between consumption and investment is the key point of having happy people and healthy economics, if you are not using any other tolls like religion or any kind of brainwashing techniques.
    During the cold war a huge gap between west and east was created, because all of the wealth in east countries was invested in science research (how to build new weapon), but the west was investing in advertising research (how to buy a new car)

  5. Shadyhunter04

    They treated him that way because he could – and did – set the interest rate for the short term. Setting short term interests has a huge impact on the economy so you’re severely underestimating the power of the Federal Reserve.

    Of course the elected government also has an effect on the Fed by having it do its bidding, all this despite their effort to give off an image of being independent.

  6. The purpose of Fed and other central banks is to print money and to keep inflation steady. It has nothing to do with the state of economy. This was a big problem few years ago: people treated Greenspan as a Messiah of America. Nuts! The elected government is responsible for setting directions of the economy.

    This crisis will last as long as balance of payments between East and West won’t be balanced again, or East won’t start lending to West again.

  7. Shadyhunter04

    Actually, a wealthy person is very likely to use only a small fraction of his wealth doing what you describe, otherwise they wouldn’t be wealthy for very long. Poor people use a greater % of wealth on consumption than the rich.

    And tell me, where will those 400 thousand dollars go next? They’re not going to keep those under a mattress – it eventually it finds its way back to the USA as export revenue.

  8. Shadyhunter04

    The transfer of wealth has so far been from Asia to the USA, not the other way around. Our wealth is temporary though, since we have to pay it back. If anything, they gave us wealth, and we squandered it by consuming and not investing.

    While it may have played its part, Asia is still a minor player in the cause of the housing crisis – the real cause being the Fed Reserve, bad government incentives/regulations, grading agencies, and just plain old stupidity.

  9. It’s hard to even imagine how HUGE of an investment it was for Sal to make these videos of wisdom. This video should have at least 10 times more views.

  10. If someone bought the fish just to eat it, or if someone came to eat at your restaurant than the equations change.
    The less “consumption” you have in a society (i.e. the more people re-use everything around to make it contribute to “wealth”) the better your society is – but it is wrong to say that someone has to “consume” by buying your product (from an economy viewpoint you’ve confusing “buying something” with “consuming something”).

  11. Close – but wrong.
    Consumption in “economy” refers to buying something and use it in its “last stage” of existence – not something that you reuse to give “wealth” to the group. If you buy a car and use it to run a taxi company then it’s not consumption, if you buy a fish then transform it into a meal that you resell afterwards, if the people who ate the meal used your restaurants to invite potential customers to dinner, than the fish isn’t consumption and the meal isn’t either.

  12. Nice try. Keep it up check out esteembpo + com for social media marketing. DRTYRK

  13. Consumption vs. investment is only meaningful at the level of individual. On the society level whatever it is only a wealth transfer. If everyone were only to invest, none would buy your new factory’s goods: someone has to consume by buying your product. Example: China and Japan wants only to invest but not consume. On the other hand Americans only consume by buying Asian stuff. This led to the wealth transfer from USA to Asia and led to the current crisis. The housing bouble is only a corollary

  14. ThatIsNotDeadWhich

    Your dancer example assumes full employment for the inflation effect. If the 200 people were unemployed to begin with, their time-capital would have been burned anyway, because contrary to the claims of the little grey men in the novel Momo, time cannot be saved up.

  15. Hehehe.. more girls should watch this. Well, I only go after brands to get quality, not ego. Say a well known branded shoes. It will last longer than a cheap unknown or fake brand one.

  16. As far as your point on the contribution to society, I disagree. The purchase and the installation contribute due to the fact that they were goods purchased from a seller and installed by a contractor. Now as far as a personal investment, that is a gray area, but gray is made up of spots of black & white. Capital gain, here is a speculation and I agree if and only if you Know the house wont sell at a fixed price, term, or rate. I agree entirely on cosmetic consumption only confidence is bought.

  17. What do you think?

  18. I think this to me means that “trickle down economics” doesn’t work. A wealthy person doesn’t really contribute to society in his manner of purchasing things. He buys a Rolls Royce for 400 thousand dollars and it goes to a factory in England. It doesn’t really help the local economy. The same goes for Rolex watches and other things that the billionaire buys. I agree btw, Nano Solar technology and Gulf Stream technology.

  19. Since you work at a hedge fund, can you talk about trading or technical analysis?

  20. ArabicAtheist

    what about prostitution is it consumption

  21. gamemaster014

    hey salman wheres consumption 1

  22. Hey Sal! Consumption 1 isn’t available?

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