Re: A Savings-Free Economy

["John B. O'Donnell" <jackodonnell@xxxxxxxx>]

Mason A. Clark wrote:
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>  Question:  Could a no-savings (in the sense defined above)
>  economy work?

Yes, since all of your "savings" references are to money savings. Such
an economy could work just as could an economy without money.

> Could it grow?

Yes, just as the economies that existed prior to the introduction of
money grew into the economies that made the discovery.

>  Would it be more stable by
>  virtue of removing one source of instability:  mob saving in
>  times of lost confidence?

Not likely, but there are enough unknowns in such a scenario to bring
considerable doubt to any conclusion that may be drawn upon the premise
offered.

>  Does the idea cast any light on
>  economic theory?       (and the proposal is satirical so don't
>  jump on me)

About as much as many other theories about economics casts light on
understanding the behavior of an economy.


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			-- jbod

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