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But we saved everything 🙂.
John Cochrane contends that redistributing wealth to support consumption could lead to diminished wealth accumulation and fewer savings or investments in productive assets.
According to Cochrane, wealth transferred to poorer individuals is less likely to remain invested in productive capital than wealth held by billionaires. He suggests that such redistribution may hinder the creation of savings, investment, and industrial growth.
Cochrane has weighed in on other market trends in recent commentary. He previously argued that a one-time unfunded fiscal expansion was the main cause of recent inflation, using Switzerland as an example. In technology markets, he discussed how a potential Space X IPO could impact tech stock prices via index fund inflows.