Investment vs. Consumption 1

[StrychnineGin12345]

In capitalism investment doesn't exist without concumption. I would argue that consumption is productive to society by allowing the granite factory worker to be paid, the company that makes the hardwood floor to be profitable, ect. The only problem is that it has to be an ever growing system finding new products to sell. We end consuming conspicuously consuming. However the economy demands consumption to exist. Easy profits in useless products. Captialism

[Juands10]

I really enjoy the way you laid this out. good job buddy

[Juands10]

what you dont invest, you consume and vice versa. countries with a high savings9investment) tend to be technological better off and hence have a higher output per worker and higher standard of living. yhowever the united states gdp is mostly made up of consumption, about 70% if not higher. if anything a consumption tax seems like a viable solution to decrease consumptions and hence increase investment which would lead to more growth.

[gotmituns]

very nice

[rhocassiopeiae]

the US is a country that has all it's basic needs met, that's why luxury is the new "basic" to keep this economy growing, I'm sure there are other alternatives to buying luxury, and the reason corps are out invading third world countries is because those countries actually needs those basic items that are no longer selling in the US. Over consumption is bad, and I believe services needs to replace materials items to help the economy strive.

[Jaynonymous1]

This is so true. I remember an interior decorator trying to convince me that spending hundreds of thousands dollars on granite, hardwood, and extra space would yield even more market value of my house. I remember having similar thoughts to your video as I eventually decided not to proceed with the improvements.

[djsuperstar717]

Is an Amazon Kindle an Investment or Consumption?

[rhocassiopeiae]

@djsuperstar717

I think it's a consumption. How many more books are you going to buy in your lifetime that your library shelves can't handle? Besides, aren't all electronic devices adding to our e-waste?

[Juands10]

@djsuperstar717 freakan geat question. i would argue that it is an investment because the future of waste will be e-waste (and on a side note you are helping save trees) . The E-waste industry will invest in new plants. no longer which will create new electronics products from your old electronics. but it comes down to how efficient they can be in executing their plans

[Buffalo122333]

@djsuperstar717

If you read only for entertainment it's Consumption.

If you read only to educate yourself it's an Investment.

Probably it will be both, it's up you you what the ratio is.

[MikDonsen]

First off as others have said buying granite and such likethat creates further jobs a direct benefit to the community. Investing on your house isn't as direct as 100 k and 150 k out . It's very tricky. Too much investement and you won't get return if the land in your area is too cheap. However if your 100k house is on a street with 300k homes your better off doing the upgrade, to help everones on your streets wealth

[autorancho]

my wife is gonna kill me.....i spent all of the sunday attached to your financial video's.....

it is sooo addictive.......thanks

[speedmuffin]

Thankyou america for consuming goods you don't need, you have made resource and manufacturing countries richer and have a massive defeciet. Thankyou America, for spending more than you save, because without this spending you wouldn't buy all the things you don't realy need. Thankyou america you are by far the richest country on earth, but money doesn't by inteligence. Please consume more, so all the aother countries can make money off you while you get fatter, dumber and insulerThankyou America

[muchachaa950]

yeah we are so brainwashed by consumerism that we confuse indulgence and investment

[sayyedsalman]

i dont agree with u sal when u said that spending $100000 on items like granite counter tops etc will not make any collective contribution to society. Think about a person who who deals in granite business dont u think his business will flourish when you are spending money on these features of the house. that business will do flourish and he may be able to contribute positively towards society when lets say.. he pay bonuses to employees working in the granite sector.

[frwgt350net]

i absolutely agree, this dude seems so smart but then to overlook basic economics. does he really have an agenda here?

[pongman]

Lol, your wife must not like this video. I'm most certain in the back of her mind she would like that kitchen with the granite counter tops and the wooden floors.

[vickiormindyb]

Debacle: THAT'S for sure.

Recently I invested some money in a CD Account. I have no idea what's happening with it now.

I read a report by a financial writer, who said renting is better than buying right now.

Do you think that's true?

[disillusions]

I'm definitely happy renting right now vs owning a home mortgage. But I would imagine that you could get some damn good deals out of this mess if you have the money on hand to buy a house. Financing is obviously not going to happen too easily.

[jdrizd2]

Very egalitarian ideas that you resolve on. Yes, the bubble was constructed on social ideas of egalitarianism but ended with America's brokers once again searching for unlimited wealth. Promising a dream of homeownership is evil, but falsifying profits on a proven bad security concept from the original savings and loan bailout is simply criminal.