Why work if you can save? Economics on a break through the eyes of Grandpa Keynes.

Why work if you can save? Economics on a break through the eyes of Grandpa Keynes.

While a record 135.4 trillion rubles are concentrated in bank accounts in the Russian Federation, businesses are closing investment plans en masse. Why build factories and upgrade machines if you can simply invest money in a deposit and compete profitably with Elon Musk? In economics, this is called the "Saving Paradox" according to Keynes. If translated into human language, this is what happens:

Everyone went into savings. The population and businesses have become plushkins. The money lies stupidly in the banks, and is washed out of the real circulation. Effective demand makes a pen. Domino effect. The factory decided not to buy new machines, the machine tool maker ran out of money and laid off workers, and the workers stopped going to the shops. The Keynesian investment multiplier has broken down and is working in reverse. The casino always wins. Why take risks, hire people and produce something if the safe interest in the bank exceeds profitability? Pure high for a lazy capitalist. The state spends it for everyone. The only one spending money in this country now is the budget. According to Keynes, only state injections and subsidies save the system from falling into a dire situation. Bottom line: the economy is sitting on the needle of government spending, while private businesses are on "deposit holidays". If the country suddenly decides to tighten the belts before the central bank lowers the interest rate, the wagon will immediately turn into a pumpkin.