What's needed is a new global financial doctrine that addresses the issues of global saving and consumption, currency arrangements, financial regulation and trade.
We really do need to add U.S. and Chinese consumers together and divide by two to reduce the enormous imbalance in saving and consumption.
It diverts energy away from producing forward thrust by channeling it out of saving and investment into consumption.
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Use of disposable income account shows how households, general government and non-profit institutions serving households distribute their disposable income between final consumption expenditures and saving.
By investing (and saving), a country sacrifices current consumption but future output and consumption will be higher.
And, rising interest rates are usually an incentive to reduce consumption in favor of saving and investing.
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Disposable income is defined as income left at institutional units' disposal for final consumption and saving.
Installing simple, cheap devices such as water-saving taps and toilets can reduce consumption by up to 50%.
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Huawei's unique Quick Power Control (QPC) and Automated Discontinuous Reception (ADRX) power-saving technologies, reduces power consumption by 30% and charging time by more than 25% compared to other smartphones.
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Squeezing down current consumption and encouraging maximum saving and investment produces a higher growth rate and higher standard of living some time in the future.
Rather, economic growth is the result of hundreds of millions of individual decision-makers, each acting in their best interests to shift their consumption plans, saving, and investment in response to desirable opportunities that they face.
Tax consumption, rather than saving and investment.
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Paradigm works primarily in rural Kenya, providing women with clean cookstoves that reduce wood consumption and toxic smoke, saving long and often treacherous journeys to collect wood and preventing the development of pneumonia and other respiratory illnesses.
Taxing consumption rather than productivity would encourage saving and investment, in turn stimulating production and economic growth.
The most fruitful reform, notes Lardy, would be to end financial repression by liberalizing interest rates, which would increase real rates on deposits, thereby decreasing saving if the income effect is strong, and increasing consumption.
The trouble is that, after years of government-sponsored anti-import and anti-consumption campaigns, many South Koreans believe that most problems can be solved by saving more and not buying foreign luxury goods.
The reason is simple: A consumption levy would not tax income from saving, and low- and moderate-income people save a lot less than the rich.
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It is flawed mainly because it confuses saving with hoarding and assumes that income not spent in the first round on consumption is not spent at all, even in subsequent rounds.
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If firms create fewer jobs, or even lay people off, consumption could catch a cold which would mean more saving and even bigger external surpluses.
Or, you could subtract the consumption line from the 45-degree line and get a saving line that you could plot against the investment line to get the same equilibrium levels.
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Power-saving techniques and voltage and frequency "slewing" will allow its chip to lower electricity consumption by up to 50%.
Additionally, these programs will dramatically cut the oil we consume, saving a total of 12 billion barrels of oil, and by 2025, reduce oil consumption by 2.2 million barrels a day -- as much as half of the oil we import from OPEC every day.
While corporate saving has risen, household saving in many places has fallen, thanks both to demographics and to government efforts to boost consumption.
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The power-saving technology described in this patent is trivial and contributes only a negligible reduction in power-consumption, so HTC has removed any allegedly corresponding functionality from all of its current German handsets as a precaution against any attempt by Nokia to extend the scope of the judgment unfairly.
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Light taxes on capital gains are certainly an inducement, but the other obvious driver of the kind of delayed consumption that leads to company and job creation (neither can occur without the saving that Johnson and most economists oddly decry) is the value of the dollar.
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There he ignored the basic truth that no act of saving detracts from demand, and if the Chinese choose to save, their savings will either fund the immediate consumption of others or, even better, the creation of new businesses reliant on the savings of others to grow.
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