Why savings is not the most appropriate tool for economic growth?
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For an economy, "saving" is more than just what one household tucks away in the bank. Economists aggregate the savings from households, governments and businesses into "gross national saving," or GNS, which is a sum of all after-tax income, less what is consumed. It's typically compared to the overall GDP of a country. When it comes to GDP analysis, "investing" isn't what you put in your retirement account, it's the amount of money put into physical assets, like factories and railroads.
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investment is better tool than saving
often these terms are taken equally but are different
suppose a person save 5000 from his earnings that's the saving
but if he lend this amount to someone or deposit in bank then this amount would cause in help the economic growth
often these terms are taken equally but are different
suppose a person save 5000 from his earnings that's the saving
but if he lend this amount to someone or deposit in bank then this amount would cause in help the economic growth
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