Also, if private saving is the portion of households income not used for consumption or paying taxes we can assume that:
Y(GDP)-T(tax)-C(consumption) is private saving.
Public saving is tax revenue minus government spending represented as T-G.
National savings are private + public saving so it is condensed into Y-C-G after variables cancel out.
If we Remember that GDP (Y)=C(consumption)+(Investment)I+G(government spending)+NX( net exports which equals imports-exports) we can solve for “I” and find that:
I=Y-C-G. Savings = investments.
A budget surplus is excess tax revenue over government spending. This is represented as T-G.
It equals PUBLIC SAVING.
Likewise, a deficit is G-T which translates to (-) public saving.
What I am getting at is we have a civic responsibility to save money. Consumption is 70% of the US GDP whereas Investment (savings) is only 13%. But smart and save SOME money.
It’s our civic responsibility and we can no longer blame the government. Just some food for thought.
Despite a 19 hour course load, heavy involvement with SGA, the pressure to get an internship, and the pressure to lead my fraternity as a sophomore life is good. I am blessed and I could not ask for a better life. I am surrounded by people that care about me and it makes me feel as if I am invincible. The future isn’t a question but a goal; a goal to rise above all others and succeed. Despite the fact that this is my second all-nighter life is good. Don’t forget about family and friends because they are the ones you have when all else fails.
carrots for breakfast at 2pm