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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (377507)	8/10/2010 10:31:12 AM
From: Elroy	Read Replies (1) \| Respond to of 793916

$10 invested in productive capacity is more valuable than $10 consumed. Sounds reasonable, but the question is whether $10 invested in IBM stock is better for the economy than $10 spent at Subway sandwich? Intuitively it seems no. Your $10 won't move the needle on IBM, but it will help out the Subway owner. Change it to $50,000 on IBM versus $50,000 in local goods and services, and the answer (seems to be, I really don't know) that spending on the goods and services would do more to help the US economy than buying IBM at $131.45.