12-22-2008, 12:02 AM
mattkime wrote:
Not all spending is the same. Investments are a productive use of capital, simple consumption is not.
True enough, not all spending is the same. But there needs to be balance between capital investment and consumption of goods and services. If people don't buy the goods and services that entrepreneurs put their investment capital into then that investment will not be effective (it could go completely down the drain).