I need to refute the assertion that savings is waste. Easy right? I have to do it in 7 words or less. “Or less” would be preferable. We’re playing a game. We get decreasing numbers of words to defend our positions.
Buying unwanted goods is waste.
Wasteful to whom?
Eat all food in the fridge today.
The future exists.
“The Ant and the Grasshopper”
Savings is investments. Is “investments” waste?
6 words. 3 if you just use the first part.
Uncertain future, save!
Savings is merely deferred consumption.
Clayton -
So when keynesians say that savings is bad because it reduces aggregate demand and gdp, who is it that saves in an economy? Isn’t investment included in AD? Is it just the required reserves in the banks?
This would be good to know for my econ final on monday.
“Give me all your money.”
“Someone has to have the shit.”
But my personal, one-word favorite: “Why?” It’s a legitimate defense since no logical rebuttal can be construed.
“who is it that saves in an economy”
under keynesian theory, it is government because they believe in market failure…government is the only sect to protect people because markets aren’t perfect
to answer that question in an austrian sense, private business is the sect that saves the economy because the market NEVER fails
Savings → Investments → Productivity → Wealth