-economy--?

Question

what is the relationship between savings-investments.
Has anyone know usa savings-investments

Answer 1

I am not exactly sure what you are asking, but I will try to answer anyway.

In the economy, there are going to be net borrowers and net lenders.

Net borrowers are currently spending more than they are able to earn. This group typically includes businesses, some individuals, and of course, the government. To finance their deficits, they borrow money from net lenders. This may sound bad, but if the money is invested in items that have a future productive value, then being a net borrower is not a bad thing.

Net lenders are able to earn more than they need to operate. This group for the most part includes only individuals, but some businesses may mix in on occasion. Lenders provide the capital needed by the borrowers for expansion and (perhaps in the case of some individuals and definitely the gov't) for indulgences.

To answer you question, the so often called "greedy" rich who are able to save and invest are actually providing an invaluable service. They provide the capital that is desperately needed by entities running a deficit.

Feel free to contact me with a more specific question if this did not address yours.

Answer 2

in theory savings always = investment.

in practice (a) savings are hard to measure and (b) the theory is only true at the level of the whole world, because any one country can import or export capital.