Question on the effect of an increase in net saving

Economics Economics Questions
1

In “Man, Economy and State”, Page 519, Rothbard says:

" … Simple investigation will reveal that the only way that so much investment can be shifted from the lower to the higher stages, while preserving uniform (lowered) interest differentials (cumulative price spreads) at each stage, is to increase the number of productive stages in the economy…"

What does “simple investigation” mean here? As I see it, it is entirely possible NOT to increase the number of stages.

E.g.:

Given the new consumption of 80 ounces, a lowered interest rate (say 3%), and keeping the same 6 stages, his previous example on page 395(before the increase of saving) can be changed to:

investment land/labor cost of capital goods interest earned

77.66 4.36 73.3 2.3

71.17 5 66.17 2.13

64.25 10 54.25 1.93

52.66 10 42.66 1.59

41.42 10 31.42 1.24

30.5 30.5 0 0.92

337.66 69.86 10.11

So total saving is about 338 and total income is about 80, under an interest rate of 3%, and no stage is added.

Am I missing anything here? Thanks.

2

I think that an increase in net saving should not necessarily increase the productive stages.

Agree? disagree? Any thoughts please? Thank you.

3

Looks like you are right.

I’ll bolster with a quote from the study guide [emphasis mine]:

The
smaller spending on lower stages, coupled with the higher
spending on higher stages (and perhaps the introduction of new,
higher stages), corresponds to a smaller “markup” between
stages.

4

Nice quote. Thanks a lot.