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That's not completely true. Spending increases the velocity of money ( http://en.wikipedia.org/wiki/Velocity_of_money http://en.wikipedia.org/wiki/Velocity_of_
by vomjom 17y ago
That's not completely true.
Spending increases the velocity of money ( http://en.wikipedia.org/wiki/Velocity_of_money http://en.wikipedia.org/wiki/Velocity_of_money ) which can, in the short term, increase employment.
- lupin_sansei 17y agoSaving/investment also increases employment as the borrowers use it to increase their capital (buy more machinery etc), which needs extra employment.