Raising Standards of Living

As the textbook states, …in order to raise funding standards over time, an economy must devote at to the lowest degree some fraction of its current output to increasing prox(a) output (469). In other words, saving for the future is an infinite necessity so that the economy can thrive for age to come. However, not only is savings required, but so is what the text refers to as economical dressment, which is the creation and expansion of business enterprises (469). nest egg relates directly to investment because there can be no economic investment if there is only a circumscribe amount of savings. If both we as a country do is consume, there will be no money to carry and improve upon current technology, and that is why people cannot enjoy more of both. The amount of consumption today will forecast our world power to invest for the future. It is imperative that we do not consume at a higher rate than what we invest because our future and the future of our children depends on the decisions we make today. As the text states, …the amount of economic investment…is ultimately limited by the amount of savings (469).

We must always keep in mind that all of our financial decisions not only affect us as individuals, but they ultimately affect our country as a whole. For example, when we put money into a savings account at a bank, both we and businesses profit from it. We earn interest depending on the amount we have deposited and our money allows businesses to borrow from the bank to invest in building factories, warehouses, etc. (469). Furthermore, we have to keep in mind that not every project funded with the investments will be a success. Because the future is so unpredictable, investment is pertinent for us as a country to grow. If you want to get a full essay, order it on our website: Orderessay

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