Presumably this is because allocation of capital drastically augments the labor that people do. (investing in a farm allows a farmer to replace his hand-plow with a tractor, drastically increasing output). I learned Intro. Econ from Greg Mankiw’s textbook “Principles of Economics” and I was very impressed by his reasoning.
If this wasn’t a sincere question then I apologize: my ability to read sarcasm is limited.
the simple answer is that when you reinvest you have to reinvest in something. Lots of people investing in lots of companies = more competition = better world.
Presumably this is because allocation of capital drastically augments the labor that people do. (investing in a farm allows a farmer to replace his hand-plow with a tractor, drastically increasing output). I learned Intro. Econ from Greg Mankiw’s textbook “Principles of Economics” and I was very impressed by his reasoning.
If this wasn’t a sincere question then I apologize: my ability to read sarcasm is limited.
No, no, I do do sarcasm, but that wasn’t a specimen. :) Thanks! I’ve put it on my reading list.
the simple answer is that when you reinvest you have to reinvest in something. Lots of people investing in lots of companies = more competition = better world.