Does all investment require saving

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When General Motors devotes $1 billion to new investment (e.g., building new factories, warehouses, offices), who does the saving that is required? Stockholders? Workers? The public? Buyers of cars?

It is estimated that the value of our private capital structures and equipment in the united states in 1992 was some $18 trillion. Assume that half of it were wiped out in some catastrophe. What would happen to U.S. productivity? To average U.S. well-being? How could the damage be repaired?

Does all investment require saving? why?

Is capital building in the United States today directed by the market alone? Does the government accumulate capital? Does public capital improve productivity as well as private capital?

Reference no: EM13835564

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