Welcome Guest [Log In] [Register]


Welcome to Conversations. We hope you enjoy your visit.


You're currently viewing our forum as a guest. This means you are limited to certain areas of the board and there are some features you can't use. If you join our community, you'll be able to access member-only sections, and use many member-only features such as customizing your profile, sending personal messages, and voting in polls. Registration is simple, fast, and completely free.


Join our community!


If you're already a member please log in to your account to access all of our features:

Username:   Password:
Add Reply
Question Regarding Spending vs. Saving To Improve The Economy
Topic Started: Oct 1 2015, 02:41 AM (160 Views)
Webster
Member Avatar
Wasatch Storyteller & Resident Forum Curmudgeon
[ *  *  *  *  *  *  *  *  *  * ]
(Reddit) Question Regarding Spending vs. Saving To Improve The Economy
Quote:
 
Keynesians often advocate for more incentives to "get people spending" to improve the economy, while saving or "hoarding" is not good for the economy.

I'm familiar with the rebuttal that money saved is also being circulated in the economy, since banks lend out savings to people who need loans and will spend that money. In other words, increased spending in consumer goods will reduce the amount spent in capital goods and vice versa.

However, what if banks instead make loans to people who will use that money for an investment in another country? If money from domestic saving is transferred to projects abroad, wouldn't consumer spending be better than capital spending for that country? (Reddit user mtp525)

...thoughts?
Offline Profile Quote Post Goto Top
 
1 user reading this topic (1 Guest and 0 Anonymous)
ZetaBoards - Free Forum Hosting
Create a free forum in seconds.
Learn More · Sign-up for Free
« Previous Topic · Politics · Next Topic »
Add Reply

Aquös by tiptopolive of the ZB Theme Zone