If you invest it in a speculative venture, you’re saying, “More of this kind of speculative venture.”
And if you invest into a company that makes popcorn, presumably you’re also saying “more popcorn please”.
I think the answer to that question is not trivially obvious <...> But my guess based on the existence of instant gratification bias is that long-term projects are generally underinvested in
I also think it’s non obvious. I’m not saying that consumption is better than investment. And I understand why we could expect less investment than optimal, but still I suspect that the difference between the two is very small.
It’s not well thought out, but I have an intuition that there should be some efficiency in this regard. If investment was a low hanging fruit, in terms of value creation, then a few rich people could invest until it isn’t a low hanging fruit any more.
you shouldn’t focus on whether the dollars evaporated or not.
Oh, yes, I didn’t mean to imply that destroying money destroys value, it was just a lazy metaphor for, I don’t know what, whatever people think is wrong with consumption. Indeed I can’t say that bruning my money, is necessarily a bad thing (although there is some waste, if it causes new money to be printed).
Alternatively, you could ignore all the money, and look at what’s happening in the physical world—ah, this person got food, this person got a car, etc.
And if you invest into a company that makes popcorn, presumably you’re also saying “more popcorn please”.
I also think it’s non obvious. I’m not saying that consumption is better than investment. And I understand why we could expect less investment than optimal, but still I suspect that the difference between the two is very small.
It’s not well thought out, but I have an intuition that there should be some efficiency in this regard. If investment was a low hanging fruit, in terms of value creation, then a few rich people could invest until it isn’t a low hanging fruit any more.
Oh, yes, I didn’t mean to imply that destroying money destroys value, it was just a lazy metaphor for, I don’t know what, whatever people think is wrong with consumption. Indeed I can’t say that bruning my money, is necessarily a bad thing (although there is some waste, if it causes new money to be printed).
Yes, I’d like more of that.