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tapp | 9 years ago

What is the difference between "hoarding cash" and "saving" besides the fact that one sounds evil and the other virtuous?

(I don't intend that as a rhetorical question - I'm sincerely asking.)

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lmm|9 years ago

Saving (as distinct from investment in productive things) is also bad for the economy. A small amount of buffer may smooth the working of the economy, but stored cash/assets are dead weight - it's better if people are spending immediately, keeping the cash circulating into productive things.

irln|9 years ago

> but stored cash/assets are dead weight

Curious, are US treasuries or interest in a savings account considered "dead weight" in your definition?

wmf|9 years ago

"Saving" usually refers to investments which are then loaned out to increase the velocity of money while "hoarding" does not.