The decision to consume your income or save it for future use is one of the most fundamental decisions in the world. Economic theory tells us that I = S, i.e. that the sum total of all investments must equal the sum total of all savings. If nobody saves, there is no money to invest (one day I will write a post about why this assumption might be flawed, but let’s assume it is true for now).
I knew it…
I knew it…
I knew it…
The decision to consume your income or save it for future use is one of the most fundamental decisions in the world. Economic theory tells us that I = S, i.e. that the sum total of all investments must equal the sum total of all savings. If nobody saves, there is no money to invest (one day I will write a post about why this assumption might be flawed, but let’s assume it is true for now).