HOMZ - The Monetary Death Spiral
The Underestimated Growth Engine
In a previous post (see here), I wrote about the often-ignored engine of organic economic growth that is private savings.
To quote myself:
Saving leads to investment. Investment leads to increased productivity and output capacity. These lead to more valuable workers. More valuable workers command higher wages. Higher wages leads to more consumption. More consumption leads to higher GDP growth.
This is a modified version of the Harrod-Domar Model of economic growth, as illustrated here:
Source: economicshelp.org
The only addition I would make to the above flow chart would