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 Women Icon |
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This error from bit of what it is the most difficult to leave. ItIt is generated by belief as if it is necessary for the owner of riches capital
Property as that whereas it the expected actually interests The income of this property. The expected income entirely depends from Effective demand assumed in the future in its ratio to the future
To sentence conditions. Therefore, if the savings act in any way does not raise
The expected income, it also will not stimulate the investment. Besides, that
Riches, not without fail it is required, that the new has been made Capital property. The in itself act of savings from outside one person, Being, as we have shown above, double-sided transaction, forces someone Another to transfer to this person a known subject of riches, old or new. Each act of savings involves the inevitable "forced" transmission Riches to the one who saves up though it in turn can suffer from Savings of others. These transmissions of riches do not demand creation new Riches - in practice as we saw, they can even actively interfere To it. Creation of new riches entirely depends on, whether will reach The brought in expected income of the certain level installed by the flowing Norm of percent. The expected income of the limiting new investment cannot
To increase only because somebody wishes to increase the riches, - after all it
Depends on prospective demand for certain subjects in the defined Time.
We will not leave from this output and arguing as follows. That interests The proprietor of riches, so it not any given expected income, and Highest of accessible expected incomes so desire strengthening to own Riches reduces that expected income to which should be satisfied To new investors. But in this reasoning that is lost sight Circumstance that for the owner of real capital property always There is an alternative - to own instead of it money or debt Obligations. Therefore the minimum expected income to which it is necessary To be satisfied to new investors, cannot fall below that level, which
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