Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (121152)	7/1/2002 6:00:00 PM
From: carranza2	Read Replies (1) \| Respond to of 152472

Wait a minuteeeee! Whoaa, feller. Richebacher and the Austrians can't have it both ways. Either increased savings are good for the economy, as Richebacher presumably suggests because he says decreased savings are bad for it, or they are bad. He can't credibly swing both ways. And he doesn't, but you do, presumably tongue-in-cheek. A healthy economy saves, transforms the savings into capital, and puts it to use. The examples you use indicate that high savings rates do not necessarily lead to capital formation. I have seen nothing to suggest that US savings are mis-used in this manner. Increased savings lead to capital formation, thence to higher productivty and increased innovation, then to higher profits and a stronger all-around economy. Increased consumption is like a quick fix for a drug addict who is limited in funds--so long as he has the cash to buy a fix, he feels good. When he runs out, he'll be in deep trouble. Extending the drug addict analogy, the addict is much better off if he saves some of his money and invests in an opium venture that will keep him permanently supplied.