New technology will be introduced along with labor-saving capital investment, and skilled workers will tend to replace unskilled workers.
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Traders would then be able to net their cash and derivatives positions on several exchanges with a single clearing house, saving capital.
By contrast, if you leave the same stock to the same person in your will, the recipient gets a stepped-up basis to the value as of your date of death, saving capital gains tax.
Their operating profits will widen, their land holdings will rise in value, and they will sell their new homes much more quickly, saving on capital costs, he argues.
Deborah Schuler, vice president of the Banking Group of Moody's Asia Pacific, says banks all across Asia were guilty of plowing money back into loans rather than saving their capital for a rainy day.
So, despite India's high saving rate, capital available for investment in infrastructure is scant.
Thus saving makes investment capital available for new businesses hiring new workers and creating new products that sustain and beautify life.
But there is nothing to stop households accumulating capital by saving.
That has cut capital on hand by hundreds of millions of dollars, a substantial percentage of the bank's capital, saving millions a year in funding costs.
Saving is what rebuilds the capital base so that new ideas with the potential to boost the economy can be matched with credit.
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Over the past year there has been little sign that people are saving less and spending their capital gains, so a slump in share prices should not have much impact either.
Ed McKelvey, an economist at Goldman Sachs, points out that the historically flat personal saving rate (once realised capital gains are included) means that households are, in essence, treating such gains as a perfect substitute for disposable income.
Their statement coincided with the 10th anniversary of an open letter written by the late Nobel Laureate Milton Friedman, explaining that the estate tax ties up capital, punishes saving and investing, fails to raise substantial revenue, and increases economic inequality.
Mr Walker estimates domestic saving from money-supply and capital-account data (which, again, should be more reliable than national-account numbers).
China has no obvious need for foreign capital: its own saving is more than enough to meet its investment needs.
The second result from a rise in capital gains taxes is that it would change the return on investment which would lower the overall rate of saving and investing and as a consequence lower the overall capital investment which in turn would lower GDP growth and expansion.
Gorman may be thinking about saving the cash in order to meet capital ratios set by the upcoming Basel II standards.
Both sides desire capital consumption over the very saving that provides credit to the businesses that would otherwise move the economy forward.
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When individuals save, they're by definition providing capital to entrepreneurs, and the capital formation that results from saving naturally stimulates job creation.
Messrs Feldstein and Samwick assume that the creation of individual retirement accounts will result in higher national saving, which in turn will raise capital formation and thus corporate-tax revenue.
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Demand is the easy part, after which the true goal of economic policy should be to stimulate saving so that entrepreneurs have access to capital and individuals have funds for a rainy day.
Inheritance tax is undoubtedly unpopular but it deters saving less than most other taxes on capital accumulation, as Alan Auerbach, an economist at the University of California, Berkeley, pointed out in a recent lecture in London.
America may boast highly efficient labour and capital markets, but these advantages are partly offset by poor primary and secondary education, run-down public infrastructure, and inadequate saving that makes the country dependent on foreign capital.
Without sufficient saving and investment, our stock and quality of capital goods cannot even be maintained, let alone increase.
John Osbon, founder of Osbon Capital Management, suggests parents should start saving for their child's college tuition once they find out they are having a baby.
The capital-gains cuts will probably increase saving, which is good.
That has required us to make up the difference between our national investment and national saving by borrowing abroad in the form of the capital inflow that finances our trade deficit.
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The saving grace for countries with entrepreneurial energy and sufficient startup capital is that periods like this sow the seeds of rebirth.
Other things equal, the reduction in the trade deficit due to fracking will reduce imported capital and put pressure on investment relative to saving and government spending relative to taxing.
In 2005 Ben Bernanke, now chairman of the Federal Reserve, pointed out that global interest rates were oddly low, suggesting a glut of saving abroad, not a shortfall of saving at home, was responsible for the flow of capital to America.
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