#19 – Logan Chipkin: Understanding Economics
Arjun Khemani Podcast
00:00
The Economics of Capitalism and Consumption
For an economy to expand, people have to invest in capital goods that eventually are used towards the production of ever more and ever greater quality consumer goods. But the bigger the government, the more that they tax, themore that they lower the returns on entrepreneurial activity. And investment and savings is the opposite of a consumeristic culture. So if you know your money is going to lose purchasing power in the future, you're much more likely to spend it today on consumer goods.
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