Sometimes you're an investment, sometimes you're insurance, and other times you're a luxury or even an impulse buy.
I think this is a better framing because it explains some behaviours that are otherwise baffling: if I'm hurting for cash, I'm going to stop adding to my savings before I cancel all my insurance, even if the expected rate of return is higher.
I really like this comment and I think your framing is the correct way to think about it.
For example, when I look through the pattern of folks in my LinkedIn network who have been hit hard by layoffs, it's clear to me that a lot of roles were "luxuries" or "impulse buys" during the ZIRP era, and so many of those roles have vanished over the past 2 years or so.
Often, especially in large businesses, which of these categories you fall into (investment, insurance, luxury/impulse buy) is more a function of which of these buckets your business unit is in than you as an individual.
I've always tried to avoid working for cost centers, where the business's goal is to reduce cost as much as possible while continuing to provide the necessary utility (like on-premise IT). Cost centers are most prone to offshoring and automation; and this is where the "AI threat" is most likely to materialize.
But if your business unit is viewed as an investment center (like an R&D center), you're part of a strategic asset and you're also (by proxy) viewed as an investment. Luxury and impulse buys also happen here a lot more often.
I think this is a better framing because it explains some behaviours that are otherwise baffling: if I'm hurting for cash, I'm going to stop adding to my savings before I cancel all my insurance, even if the expected rate of return is higher.