You convert capital into ordinary purchasing power by using the money to buy som... | Hacker News

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		eli_gottlieb on July 9, 2012 \| parent \| context \| favorite \| on: How the Rich Got Rich You convert capital into ordinary purchasing power by using the money to buy something. This shifts the money from the column labeled "aggregate capital stock" to "aggregate demand for goods and services."

justinmk on July 17, 2012 [–]

Giving money to consumers doesn't lower the aggregate supply of real capital, it just sends false signals to producers (and consumers).

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