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Re:Share of Income Gains by Quintile - Great Depression til Now by OstiaAntica on Friday September 09, 2011 @10:13PM (#2980577)
There's no loss in aggregate demand from savings and investment...investment is still spent, just on factories and equipment and research instead of consumer goods.
Re:Share of Income Gains by Quintile - Great Depression til Now by nhaehnle on Saturday September 10, 2011 @04:09AM (#2981133)
It seems to me that you are implicitly assuming that savings always equal investments. This is not true. Savings minus investments is the private sector balance, which has varied wildly, see e.g. the graph here: http://pragcap.com/sectoral-balances-and-the-united-states