> "But when money is invested it is used to buy capital goods–houses or office buildings or factories or ships or motor trucks or machines. Any one of these projects puts as much money into circulation and gives as much employment as the same amount of money spent directly on consumption.

This is nice in theory but certainly false in practice.

In practice much of the price paid for capital-goods is not for capital at all, but for land and monopoly priviliges. In real estate, the land share of real estate value can be 60% of the total investment.

Payments for land and investment in land purchases are always surplus payments beyond what is necessary to bring land into use as a factor of production, because land is a fixed natural resource which does not have a labor cost of production.

When investment in land increases through land banking, this increases the opportunity cost of investing in businesses which employ labor to produce goods and services, which decreases the demand for labor and lowers wages.

Policies which are designed to increase investment and savings over consumption typically decrease economic output and slow growth, because while increased consumption of labor produced goods and services increases the profits for investing in productive businesses supplying these services and the demand for labor, increased investment does not necessarily increase the demand for labor or the supply of labor produced goods and services at all.

It's possible for policies promoting increased investment and savings to promote nothing more than land banking and investors holding empty parking lots while waiting for a speculative increase in price.