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by Double_Cast
3925 days ago
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Capitalism does not oblige anyone to invest their capital immediately and whenever possible. If the majority of the market chooses to withhold its capital, then withholding capital is likely a rational response to market conditions. > Hutt goes for the heart of Keynes’s prescription for recovery, which was to get idle resources moving, whether that is money, capital, or labor. If something isn’t being employed right now, it is being wasted. > Hutt responded at length that there is nothing uneconomic or necessarily inefficient about an idle resource. It is the decision of the owner to hold back when faced with a long-term plan, a judgment call concerning risk, a high reservation wage, or a demand for larger cash balances. https://mises.org/library/theory-idle-resources-0 |
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