1. When General Motors offers the $1 billion to new investment (e.g., building new factories, offices, warehouse), who does the saving that is required? Workers? Stockholders? The public? Buyers of cars?
2. It is estimated that the value of equipment in the United States and our private capital structures in 1992 was some $18 trillion. Suppose that half of it were wiped out in some catastrophe. Discuss what would happen to U.S. productivity? To average U.S. well-being? Discuss how could the damage be repaired?
3. Why does all investment require saving?
4. Does the government accumulate capital? Is capital building in the United States today directed by the market alone? Does public capital improve productivity as well as private capital?