Right, let’s do this.
Joan Robinson on investment and saving in 10 tweets or less. 1/
All income is spent on C goods or is saved.
The income derived from producing C goods is equal to what is spent on them.
Therefore, what is saved is equal to the income from producing I goods.
S=I 3/
But saving is not the same thing as investment. 4/
Entrepreneurs decide to expand their plant ... Incomes increase.
With a higher level of income, and the same attitude to saving, the amount saved increases. 5/
The argument does not run in the reverse way. The desire to save does not promote investment.
Suppose desire to save increases. Some spend less of their income. Activity and income fall. 6/
The actions of savers can only influence current consumption. 7/