Originally posted by poet1b
reply to post by Asktheanimals
Exactly, hoarding of wealth locks up the money supply, and shuts down the economy.
Ok. The next question should be, "What, historically speaking, has been the primary cause of 'hoarding?'"
I mean, this is the super-evil-greedy-rich-elite we're talking about. They love making money, its what they live for. So why would they start
'hoarding' their money? A giant pile of cash and coins in a huge Scrooge McDuck private safe does not make money. Actually, it is guaranteed to lose
money, because national and world economies are inflationary.
Spending money is how you make money. You risk current assets in an attempt to increase them. Greater risk means higher chances of losing what you
risked, but greater payoffs if it succeeds. That's why venture capitalists make billions overnight....and lose it just as quickly.
So what makes people hoard? Usually, its anticipation of a future period of disruption or chaos--like people who live on the coast buying cases and
cases of bottled water when there's a hurricane on the way.
Economically speaking, we are in a period of disruption and chaos. Does anyone dispute this? Do any of you think now would be a great time to invest
a bunch of your time and assets into starting a business, or expanding a current business?
I don't. In my early 20's I decided I was not cut out for the "debtor's philosophy" of spending future income on stuff now...it works for most people
but I didn't think I was up for shouldering that responsibility(I have a hard time paying my utility bills on time whether I have the money to pay
them or not, so 30 years of mortgage payments did not look like a good risk to me). So I have no outstanding debt at this time. Occasionally--this is
rare these days but it happens--after paying all current costs and expenses, I still have nickel or two left over to rub together. The big brains and
the talking heads call this "expendable income." I just say I "made money" and reduce my carbon footprint through syllable conservation.
But what do I do with the money I make these days? I save it--which is another way of saying I try to lose it as slowly as possible. Occasionally,
when I realize I have accumulated enough to do so, I'll go out and exchange it for something that is less likely to depreciate in value, such as gold.
People think I'm trying to "make money" when I buy gold because "its value keeps rising." That's not what I'm doing. Gold's value is so stable it's
almost fixed in place. What is rising is the amount of cash required to purchase an ounce of gold--i.e., the value of the cash is dropping, rather
than the value of gold rising(its value is rising a bit though because the demand for it as a stabilizing factor vs. inflation has increased). So I'm
not trying to make money when I swap dollars for gold. I'm trying to insulate my savings against the value-draining effect of inflation.
In other words, I'm hoarding
This is why strict regulation of banks and strong protection of workers and consumers is the key to a strong economy.
It forces corporations to do what is supposed to be done, rather than cut corners to hoard bonus money.
Ahhhh. I wasn't aware that there was something I am supposed
to be doing. My company is a corporation, so this is important to me. What is it
you think I am supposed to be doing? Can we talk about it? Or are you just gonna send in the government muscle to force me to do it?
By the way, I'm not sure what you mean by "cut corners" and "bonus money." Useful discourse requires mutual agreement as to the exact definition of
terms. Please explain what these two terms mean to you, so we don't have any misunderstandings.
edit on 7/22/2012 by Tsurugi because: Grammar