Tariff is a tax on sales, whereas at least corporate income tax is net of cost
REvealed preference
Anything that happen in accounting must also have an economic forces;
You want to invest more than the savings in the economy (so outside capital comes in to close that gap)… a low savings economy = high consumption economy and have a high trade deficits.
ALl the savings in the global economy must equial all the investmen tin the global economy (ask about this and put in GPT)
Global savings glut: Japan, China, & Singapore (highest savings rate)
- Using reserves to defend ucrrencies and destribuctive devaluation.
- high savings, low consumption economies.
Interactions between culture and other influences for savings
- Demographics (always thinka bout what are the major contributors and that will come from magnitude)
- W/ only one child less of a
THree part of US savings:
- Household + Business (retained earnings) + Gov savings (what would gov savings look like?)