Re:To Understand Rising Inequality, Consider Janitors
by chromatic on Sunday September 03, 2017 @09:30PM
(#15165024)
It seems equally intuitive that investment drives the economy.
The economic principle you're looking for is "velocity of money". If you think of a GDP in terms of a multiplier in how often/fast money circulates, then you can analyze whether investment or spending is more important.
The second economic principle to look into after that is "marginal propensity to consume".
The economic principle you're looking for is "velocity of money". If you think of a GDP in terms of a multiplier in how often/fast money circulates, then you can analyze whether investment or spending is more important.
The second economic principle to look into after that is "marginal propensity to consume".