Saving Physical Assets - How And What To Save
Now, food and healthcare can’t be saved the same way that acorns are saved. There is, however, an alternative. The baby boomers could build up stockpiles of commodities that deteriorate very slowly, such as iron and aluminum metal. When they retire, baby boomers could sell off their stockpiles of metals. By supplying the metals needed by the economy from the stockpiles, the mining and smelting industries could be scaled back. The people who would have done these jobs can then focus on providing food and healthcare.
The trick is to build up stockpiles of commodities that deteriorate slowly and have a wide variety of uses. Stockpiling finished products like cars or washing machines is risky because they can breakdown over time in storage and might become obsolete. Metals and other solid mineral resources are the best commodities to store. If the interest rate is reduced to zero by government savings, the cost of stockpiling commodities is reduced to the physical storage costs and whatever deterioration in quality happens while the commodity is in storage.
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