Yaron Answers: Aren't Hoarding And Saving Bad In A Free Market?

[Draanor]

I agree, hoarding is a symptom of a problem, not a problem itself.

[freetrailerpoor]

I plan not to keep any more money in a bank because hoarding is better than putting it there. You are saving for a rainy day. If you put it in a bank and the government bails them out you are part of the problem because you put your money there. The Bank of Amsterdam was the only full reserve bank. As result imho, it caused Amsterdam to be the richest city in the world, not only richest most objective. I will never support people depositing money in banks so the banks can take that money.

[igorkrupitsky]

When you are hoarding cash you are essentially giving an interest free loan to the goverment.

[billmelater]

Maybe someone can help me out with this:

If fiat currency on its own is worthless, then does it matter what the overall amount is? If you burn a pile of your own money - or even hoard it -, then would the loss not be primarily yours with secondary and even tertiary losses being that the money burned was not spent on their goods/services? I'm still trying to wrap my head around this, so I'll try to be as clear as I can. Is the real devaluation dependent or independent of the overall amount? By that I mean if tons more bills are printed, but not put into circulation, then is the currency value really effected? I'm thinking that devaluation can only occur if the tons of extra bills are just handed out on a whim with no real earning or value being produced and exchanged for.

And then on the other hand if something is too rare and only a few people can even get it, then is it not effectively worthless as a currency?

[atruswonder]

In a free society it will pay to save and invest. Hoarding will only stagnate the individual. It won't be in his self-interest to hoard when money is so easy to make. Of course, in a free society that is.

[haxney]

Hoarding money causes deflation (everybody becomes richer). Money is a claim on goods and services. If I take a big like of cash and burn it, there is a smaller amount of money in the rest of the economy chasing after the same amount of goods and services, so everyone who still has money can buy a little bit more. Hoarding is a zero-sum game in which I make myself poorer and everyone else richer.

[DanielFragaBR]

Hoarding bitcoins is much better than saving dollars.

[generalsalami]

Hoarding real resources for no reason isn't good.
Hoarding money for no reason isn't good.
*Saving* is good. Production is good. Having freed up resources for the future (& all its uncertainty & possibilities) is good.

Edit: Lol, he went onto say the exact same thing in the vid

[podcastbard]

so saving is good for the free market. Saving is a piece of the investment puzzle that makes the economy healthy?

[qhack]

A smart horder will invest his money in tangible goods that can be used/traded when the fiat currency collapses. I hord canned goods and rotate my stock so that nothing goes bad. I also save money for my retirement incase the economy doesn't crash and burn. I am covered either way.

[LucisFerre]

Hoarding is collecting more than you'll ever use, and refusing to give it up or use it. Hoarding is irrational. Saving is to collect so that one CAN use it at a later date. Hoarding money is to make money non-currency by removing it permanently from the "current". Spending merely delays the use of money, (even though one can borrow against it) so that it has more buying/investing power later.

[LucisFerre]

[[Capitalism is BORING.]]
All your toys were produced by capitalism.

[omegaware]

I dont get it. Probably never will. This should be something taught from 4th grade and up if they want civilians to understand it.

[KevZen]

Hoarding is popular in society today, because of all the economic uncertainty. A bank might hoard their money, because they realize that lending it out, or investing in it is not a wise decision. While there might be a good return on it, the chances is they will loose what is invested or lent out.

Banks do not want to hoard money, they would rather loan out the money, or to invest it, as it is more profitable in the right market. The same goes for the remaining 99% of the population. In a free market, hoarding is a bad idea, there are many ways to make profit on your wealth, even without requiring a high rate of risk, as it does not pay anything.

Even if the Government gives out businesses 0% interest loans, they will hoard the majority of the money, as they still can make more than 0% hoarding such as collecting interest on that, and they still are able to repay the loan back to the government.