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How does he define 'productive'? I think we need to differentiate between investments that are profitable and investments that are productive in an environment where inflation is equal to or greater than 0. For instance, the capital required to pay for the education, (USA), and the cost of setting up a medical practice will be significant, but only a small fraction of the earnings to be expected over 30 years. Likewise with wind farms and automobile manufacturing facilities. But where is the productivity from 'investing' is oil futures, the effect of which is to enable the oil to be sold at a higher price by allowing oil companies to keep oil in the ground while still getting paid for it? Likewise for investments in real estate, given the ability to generate asset price bubbles.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Aug 15th, 2014 at 01:56:05 PM EST
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