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> That doesn't really answer OP's question, which is how everyone would turn those savings into goods/services. You don't. Saving = not-spending = not getting
by throw0101a 5y ago
> That doesn't really answer OP's question, which is how everyone would turn those savings into goods/services.
You don't. Saving = not-spending = not getting goods and services. At least not at the present moment.
You save now to protect against future income risk (e.g., emergency fund) and future income needs (e.g., retirement). You convert savings to cash flow when non-savings (e.g., employment income) dries up.
- gruez 5y ago>You save now to protect against future income risk (e.g., emergency fund) and future income needs (e.g., retirement). You convert savings to cash flow when non-savings (e.g., employment income) dries up. Everything you described works at an individual level, but fails at a societal level, which is what the GP was talking about. If society as a whole saved a bunch of money, and a few years later there were some sort of society-wide income risk (eg. war), those dollars won't do you much good.