“We are better off than earlier generations because we are equipped with the capital goods they have accumulated for us.” (Mises) How Saving Grows the Economy – Dan Sanchez – Mises Daily

As Ludwig von Mises wrote:Every single performance in this ceaseless pursuit of wealth production is based upon the saving and the preparatory work of earlier generations. We are the lucky heirs of our fathers and forefathers whose saving has accumulated the capital goods with the aid of which we are working today. We favorite children of the age of electricity still derive advantage from the original saving of the primitive fishermen who, in producing the first nets and canoes, devoted a part of their working time to provision for a remoter future. If the sons of these legendary fishermen had worn out these intermediary products — nets and canoes — without replacing them by new ones, they would have consumed capital and the process of saving and capital accumulation would have had to start afresh. We are better off than earlier generations because we are equipped with the capital goods they have accumulated for us.

via How Saving Grows the Economy – Dan Sanchez – Mises Daily.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.