I know I wrote about finances a few days ago, but I need another shot. I am confused. Which are we supposed to do, spend or hoard? It’s a serious question though it might seem silly on its face.
The prevailing wisdom is executives shouldn’t fly their jets. Companies shouldn’t have fancy meetings. Hoard. But that also means the folks who work the jobs supported by that spending are out of work. And, of course, unemployment begets unemployment.
On the other hand it’s unbridled spending that got us here in the first place. We bought and bought by re-financing everything–not just mortgages. I suspect there is as much upside-down capital in business as in housing. Spending doesn’t seem a panacea either.
So which is it–spend or hoard? I don’t know and all I get are confusing signs.