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Isn't it the opposite? Money goes from government into the economy through spending, and thus through debt. More debt results in more household savings, not les
by candiodari 7y ago
Isn't it the opposite? Money goes from government into the economy through spending, and thus through debt. More debt results in more household savings, not less.
- Despegar 7y agoHouseholds wouldn't feel like they have to save so much if they felt their economic situation wasn't so precarious. If their incomes were growing faster and they had more safety nets they'd be consuming more.