No is there some kind of auto industry conspiracy to The Scream Phoebe Buffay Friends TV show shirt. They build a product to a price point. And people buy them because of the competitive price. There are cars built with incredible craftsmanship, which will last far longer, but they’re also priced out of reach for the typical car owner. John Maynard Keynes referred to the concept of propensity to consume. By this, he meant the fraction of current income used for spending. That part of the current income not spent is considered saved. Following this, for the purposes of this discussion, let us define the term “Consumption” to mean the amount of spending paid for out of current income. They are mutually exclusive categories.
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If spending is categorizable as The Scream Phoebe Buffay Friends TV show shirt. If spending is categorizable as consumption spending it cannot be categorized as investment spending. All spending is categorizable as one or the other, but never both at the same time. If in the given time period, it had previously been used for spending, then that spending would have caused income for the recipient, and any further spending of that same money, would be spending paid for out of current income and that would make it consumption spending. So spending classified as an investment must be done with money not previously spent in the time period, which means that investment spending of a given amount of money can occur once and only once in that time period. Any further spending of that same money counts as consumption.
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