3 ms·
That’s only true if you are saving your money under the mattress. Savings in a bank account will be loaned by the bank to another business. There was a time whe
by csomar 6y ago
That’s only true if you are saving your money under the mattress. Savings in a bank account will be loaned by the bank to another business. There was a time when politicians encouraged saving to help the economy; and I’m not really that old.
- imtringued 6y agoIf you have a growing economy that cannot do all the investments it wants to do, encouraging more savings will lead to more growth. Right now something is preventing investments from being made and nobody knows what that something is.
- throw0101a 6y ago> Savings in a bank account will be loaned by the bank to another business. This has not been how banks have worked for decades: * https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625 Banks create loans typing something into a computer screen and money shows up in the businesss' account. No savings required. 99% of money created is not by the Fed "printing money", but rather by private bank loans. A twenty minute video summarizing the above paper: * https://www.youtube.com/watch?v=K3lP3BhvnSo https://www.youtube.com/watch?v=K3lP3BhvnSo Interview with the paper's author: * https://www.youtube.com/watch?v=uZi4QE_EfCw https://www.youtube.com/watch?v=uZi4QE_EfCw