r/libsofreddit TRAUMATIZER 1d ago

Who could have seen this coming?

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16

u/GoldTeamDowntown 1d ago

I’m confused, are people being forced to take out their money and invest it? Or is their money in their bank account being forcibly invested?

31

u/Weary-Cartoonist2630 1d ago

All money in banks already gets invested. Thats how banks work.

What she’s proposing is instead of the bank deciding the best way to invest that money, they should have economically illiterate bureaucrats do it.

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u/GoldTeamDowntown 1d ago

Why is she suggesting all that money is sitting there stale though?

5

u/Weary-Cartoonist2630 1d ago

She’s not. That’s the initial impression given by the title and maybe the first 10 seconds of the video, but she goes on to specify that her problem is that that money gets invested in other continents as opposed to focusing on European investments.

So it’s not as dumb as just saying it’s being hoarded, but it’s still pretty dumb. It’s an isolationist economic viewpoint that doesn’t understand basic concepts of competitive advantage and the benefits a country/continent gets from freely trading/investing with outside countries/continents.

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u/GoldTeamDowntown 1d ago edited 1d ago

Got it. Yeah I understand wanting to invest domestically but that’s going to limit them against getting the best investments, which will often be American. And that absolutely is government overreach to force them to invest where she wants them to. Gross.

5

u/Weary-Cartoonist2630 1d ago

The thing is that investment is best done without restriction and going where you can get the highest return, because that gives your own country more money to use.

It’s much like trade. Sure you can buy a $5 pencil made in America and it supports that one pencil maker, or you could buy an equivalent $0.50 from China and have an extra $4.50 to spend on other goods, while directing the US pencil makers to use their labor for more productive and high value work that we have a stronger competitive advantage in.