The one in the many

Saving and investment are expost equal.  No, in fact they are one.  The real social correlate of both saving and investment are one.  The act of abstension on one man’s part frees up resources that can be used to increase output in the future.  It is the productive consumption of these resources, along with machines produce output that can be further productively consumed.  The cycle goes on-reproduction of the self and others over time.  Until one dies.

Production and consumption, at least for 60% of the time (remind me to look up the exact figure for world services) are coinstantaneous, are part of the same social reality.  They refer to the same social phenomenon.  Think of haircuts and massages.  One man’s consumption is another man’s production.  They are one.

The production boundary between intermediate and final consumption is indeterminate.  My consumption of this laptop may be viewed as essential consumption so that I can return to work at IHS on Monday.  My final consumption can be looked at as intermediate consumption for IHS output.  These two are one.


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