I've been conjuring up some ideas for a series on capital theory, and the name "it takes money to make money" just seemed like the obvious (and appropriate) title. Yes, capital encompasses more than just money, but "it takes money to make money" is an old saying that everybody understands.
To sum up capital theory in as few words as possible, the best way I'd put it is - "savings drives an economy, not spending." Like I said, "it takes money to make money."
What? That's not what all the talking heads on TV and our favorite politicians are telling us! CL, you're nuts!
Maybe, but that's a topic for another time ...
Anyways ... before digging into this subject, let's watch the television talking heads back in 2006, with famous economist Arthur Laffer on their side, discussing the economy in general, and why there was NO WAY POSSIBLE A RECESSION COULD HIT THE U.S. OF A.!
Video below the fold (and it's a good one!):
