ABSTRACT
The importance of saving is emphasised along with the warning that excessive saving can be economically harmful. Savings are not necessarily invested, even though their owners seek to invest them, and will remain redundant if unable to find suitable investment outlets. For savings to be invested they must be accompanied by an effective demand for the prospective products of the investment. The importance he attached to investment is emphasised. The term “consumption” is sometimes used in a broader sense to include the consumption of capital. The desire for indolence and leisure will affect the levels of saving and production. Consumption is the main purpose of production.
