"There is a tendency to overstate the long-run effect of interest rate changes on rates of investment as a result of observing the short-to-medium-run responses of investment flows to changes in interest rates. Once installed stocks of capital have reached a level corresponding to the lower interest rate, further investment will fall to near its former rate. ... the flow in the mill-race can be increased for a time by lowering the top of the weir, the flow will fall back to its former level as soon as the surface of the mill-pond has been lowered correspondingly. Action by the Federal Reserve Board may be able to postpone, but not to overcome, the consequences of inadequate government recycling of savings into income. "

old vick



 this of course is a refutation using long run considerations
the chronic corporate investment deficit

the chronic cash sump => asset pump cycle
that feeds on itself and on easy credit to lift asset markets
 and largely leave product markets to lag

its the use of credit markets to pump up usury flows that may for a certain interval increase the spending in product markets
including corporate spending on plant and equipment