>> In the end, what we really need is business investment.
John, I don't know why people always say that. I don't see that as obvious at all. Let's say I have a catering business, and I happen to have excess capacity. I have extra kitchens, stoves, and delivery vehicles parked in the lot. This way, when business picks up, I can just hire another cook and driver. Why will society suffer, just because I can offer the extra goods at a low cost - since I don't need to build a new kitchen, or buy an extra truck ? After all, we are getting the final benefits without the expense. How can that be bad ?
The excess capacity we have guarantees that we can meet additional demand with low marginal cost. Isn't that great ? Wouldn't China, India, Russia, Ethiopia and Somalia all love to have this problem ? Even Italy, Britain and France ?
Now possibly we have a bad system for distributing the goods produced by society to all members, but that is not a question of business investment.
Sarmad |
