Under the current system of
economic intervention, the proponents of intervention come to the bizarre
conclusion that savings is harmful. For example, Keynesian economics — a
variant of which underlies the predominant economic systems practiced worldwide
— demonizes people’s choice to save. Their forced incentives to diminish
savings is like force-feeding the squirrels this year only to find that their
essential cache for the future is completely gone, ultimately leading to
disaster.
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2 comments:
Unlike the squirrel who saves real squirrel goods, humans only save money. It is obvious to anyone who reads the business news that this money has piled up in the corporate coffers and is not being used for job creation. Keynesian economists don't demonize saving, rather they only pay attentions to the obvious fact that money, unlike acorns, doesn't necessarily represent the production of real goods.
The squirrels only use their savings for direct consumption. Humans use their savings for direct (postponed) consumption but also for indirect consumption by using it to build the capital structure necessary for the production that is part of the advancement of civilization. Keynesians misunderstand and misrepresent capital which happens to be the most limiting factor in the economy. Keynesians confuse credit with capital which is only a small fraction of the fallacies of Keynesianism.
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