I know nothing about economics. Recently, I have been reading Robert Murphy’s ‘Lessons for the Young Economist,’ and I don’t really understand Chapter Ten, where he writes, “The essential insight is that a sudden increase in savings allows the economy’s output to shift away from consumption goods a…

He is saying that there are generally two scenarios in an economy: a time for consuming and a time for saving. When we consume, we spend our money ‘quickly’ from the time that we earn that money. When we save, we ‘hoard’ our money in banks. When the banks have more money, because of our saving pract…

“I don’t really understand what he’s trying to insinuate here. Is he saying that if everyone worked to create tools that could be used to make more tools, it would create opportunities for everybody? I’d like a clarification on this, because I’m afraid that I’ve missed the whole point.” He is sayin…

Can someone clarify this?

Economics Economics Questions

John_James June 12, 2012, 12:45pm 5

Welcome to the forum. You’re starting the right place!

Be sure to check out The Ultimate Beginner meta-thread to get the lay of the land, and answers to some common questions.

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Can someone clarify this?

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