Carpe Diem Economics

"Sucking the marrow out of life doesn't mean choking on the bone."
--John Keating (Dead Poet's Society)

Nice missive on the need for saving rather than spending given our predicament. The Keynesian notion that prosperity is realized on a path of consumption is, sadly, broadly accepted.

If each of us consumed all of our income or more so (thru borrowing), then three consequences follow:

1) we will have nothing set aside for the future
2) if we have borrowed, we'll have to use some of our future income to pay back debtors
3) we'll have no savings to invest in productivity improving technology

All three of these weigh on future standard of living. Saving, not consumption, is the path to improved prosperity.

Perhaps Keynesian economics is best thought of as carpe diem economics.