The most sinister lie that Keynesians/MMTers propagate is the idea that savings do nothing for the economy, that only once those savings are spent does the economy benefit from this increase in consumption.

Nothing could be further from the truth and this lie underpins our credit-based, inflationary monetary system.

The truth is that ALL savings = investment.

If I have $40k and decide to hold it in my savings account rather than purchasing a new vehicle, I am signaling to firms that what’s on the market is not worth my $40k. So if you want my hard-earned money, you better either 1. make the same car at a cheaper price (efficiency) or 2. Make a better car at the same price (innovation).

I saved, firms invested. Keynesians/MMTers need to go back to first principles.

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