Savings, unless "kept under the mattress", will be used by someone for
financing something. Deposits may not be lent, but equivalent amounts of money
probably will.
And, send too large a message to industry to slow down and someone goes broke.
Farmers, horticulturists etc. in particular are not in a position to slow down
immediately because they have to plan ahead, so they are the first to get hurt.
It's a tough world out there.
Regards. John R.
From: Triumphofthepast@aol.com
Reply-To: socialcredit@elistas.com
To:
socialcredit@elistas.com
Subject: [socialcredit] Swanwick 2
Date: Thu, 22
Dec 2005 08:30:06 EST
"Savings represent reduction in use of potential
purchasing power. And presumably there are others who would like to consume the
(goods) available so that they are not wasted? To put it another way, more
savings cause greater 'gap' allowing more room for new consumer credits?"
(John)
Still not good. We're not talking about INVESTING savings at the moment, at
least you didn't say so. Saving in and of itself is just deferring consumption.
It sends a signal to production to slow, but no goods are wasted (they would be
if production FAILED to slow), and it creates no gap to fill.
Michael
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