Wednesday, February 29, 2012

Capital Investment and the Production Possibilities Frontier

1 comment:

  1. Personal finance works the same way. The seed of money is money. Spending all of our income on "stuff" leaves no "seed" money (capital). Saving and investing some usually results in the investment yielding a return (money) which eventually will permit the spending for more "stuff". Money paid out for interest for financed purchases does not directly buy "stuff" nor does it grow our personal capital.