Looking at start-ups makes it clear how investment rather than - TopicsExpress

Looking at start-ups makes it clear how investment rather than consumption drives the economy. 90% of start-ups dont even bring in revenue for a few years. LinkedIn didnt monetize until it had 1 million users. If Facebook had tried to monetize right away they would have collapsed. Instead, these companies are purely funded by venture capitalism. They raise $1million or $5million or $10million from wealthy investors, and use that money to build a business. All of those jobs created, all of the wealth produced by organizations like Facebook and LinkedIn--it has all been enabled by investment. Investment, not consumption, enables growth.

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