Economics in Liberal Conspiracy land

Top flight football players also, I suspect, have a tendency to spend a larger proportion of their income, unlike bankers and investors, who are, I would bet, far more likely to hoard their cash and thus deprive society of a vital resource.

We have a word for this \”hoarding of a vital resource\”. It\’s called \”savings\”. Out of which we do \”investments\”.

Sigh.

10 comments on “Economics in Liberal Conspiracy land

  1. Is it even true, as a top-flight footballer, knowing he will only enjoy a few years’ earnings at that level, might prudently put aside a higher proportion of them for the future?

  2. Indeed. And due to the fractional reserve banking system, wouldn’t that money saved be loaned out 20 whatever time? Whereas money spent, can only be spent once?

  3. @Anon
    It wouldn’t matter anyways, since more and more transactions are done electronically – the money simply never leaves the banking system.

  4. He probably wouldn’t put much of the money “in the bank”. He would invest them in a range of investments, which by a somewhat circuitous route would provide money to businesses for investment and settlement funds to banks for loans made to ordinary people. For a price, of course. That’s the point.

  5. Is Mario a troll? What’s the difference between a cheque, note or electronic banking?

    Only four days to go to exchange your nice old Francs fiat money for new euro fiat money with their bridges to nowhere. After Thursday what you hid under the mattress (known to economists as reduction of the monetary base) before those Eiffels etc become valueless.

  6. Is n’t wonderful how the abundantly rich let us pay to access the money in their bank accounts as loans and so are denied the opportunity to spend the same money themselves?

  7. I keep having this argument over and over with a lefty colleague! I think fundamentally, people object to the material lifestyle “the rich” lead. In which case, increasing consumption taxes would seem to be the appropriate course of action (presumably whilst maintaining/expanding current exemptions for “essentials”).

    Now, there are some more subtle advantages which being independently wealthy brings; I’d offer security, freedom of action (i.e. once one has “fuck-you money”, one can work – or not – whatever job one pleases) and a better start for one’s offspring. I’m not sure the lattermost is inherently evil, providing it’s moderated by taxation at the point of death/inheritance, and the way to spread the former two benefits is to encourage more people to spend less than they earn and save the rest.

  8. Footballers should all follow the George Best financial strategy.. ‘I spent all the money on booze and women….the rest I just wasted’

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