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Can't we influence them to start investing their savings glut productively by (1) penalizing savings over a certain amount and/or a certain amount of time; (2) taxing certain types of consumption and investment (e.g. on fossil fuels and their derivatives), and (3) providing incentives to invest on socially and environmentally "positive" investments, e.g. renewable energy?

  1. Yes, this is what inflation does for you. To generate inflation, in the present environment, the only tool available (barring explicit price controls) is public spending.
  2. This will not encourage productive investment. It will discourage garbage investment. Which is also generally a good idea, but slightly tangential to the point.
  3. Yes, but with the exception of certain market regulations (feed-in laws, etc.) which you want to impose anyway, this is basically just outsourcing the public spending from point 1).

- Jake

Friends come and go. Enemies accumulate.
by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Nov 21st, 2013 at 05:31:28 AM EST
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