Explain how higher savings leads to a higher standard of living. What might deter a policymaker from trying?
- simplicitusLv 71 decade agoFavorite Answer
Often the do, but sometimes they don't. One example is the paradox of thrift:
Another is when the savings are wasted in investments that are of no use to anyone:
But, in theory, savings lead to investment, which can increase productivity,
the creation of new businesses, etc.