Re: A Savings-Free Economy

["Mason A. Clark" <masonc@xxxxxxxxxxxxx>]

 I'm curious.   I posted a web page proposing a savings-free
 economy -- all savings outlawed.  By "savings" I meant all
 currency under the mattress, bank accounts, stocks, bonds,
 etc -- personal ways of not "spending" earnings.

 This satire (so I thought) was inspired by the fact that the
 U.S. Tax Reform proposals all seek to increase investment
 and growth by increasing savings, thereby increasing
 investment --  quotations such as those below.

 I expected to be told it wouldn't work, but the few comments
 (with one exception) simply missed my point -- whatever it was.

 Question:  Could a no-savings (in the sense defined above)
 economy work?  Could it grow?  Would it be more stable by
 virtue of removing one source of instability:  mob saving in
 times of lost confidence?   Does the idea cast any light on
 economic theory?       (and the proposal is satirical so don't
 jump on me)

-----------------------

"encourage savings and investment"
"exempts savings, which is the seedcorn for economic expansion"
"lift...tax on saving and...... thus spur economic growth"
"higher levels of both savings and consumption because the" added investment....a
     faster growing economy"
"ends double taxation of saving, thus promoting investment"
"eliminating the bias against saving....spur ...investment...and growth"

      Mason C