Re: Re: Implications of Surplus Tax Cut?

[Jim Devine]

>I've never quite understood this. What does the potential 'investor' do 
>with his money if he does _not_ invest it? Use if for wallpaper?

he or she can always spend it on consumption or hoard it. (Just a small bit 
of hoarding can have a multiplied effect.) Or he or she can buy a 
speculative asset at a high price, just to find that it's not worth very 
much after the fact.

Jim Devine [EMAIL PROTECTED] &  http://bellarmine.lmu.edu/~jdevine