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If private sector personal savings (private sector surpluses) are the "flip side" the government's "dis-saving" (gov't deficit), then it's pretty clear that the reduction in the government's deficit caused the private sector's surplus to fall.
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So looks like the end of the payroll tax holiday may have just prevented people from saving this year as former savings are now taxed away...
Savings are a "demand leakage" anyway.... so we still end up with positive (barely) GDP growth...
rsp,
If private sector personal savings (private sector surpluses) are the "flip side" the government's "dis-saving" (gov't deficit), then it's pretty clear that the reduction in the government's deficit caused the private sector's surplus to fall.
I love this piece on President Obama by the late Alexander Cockburn: http://www.counterpunch.org/2011/08/05/ready-to-vote-for-mitt-romney/
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