Negative Saving

(redirected from Dissavings)

Negative Saving

A situation in which the persons in an economy save, in the aggregate, less than they spend. For example, suppose a small economy exists in which the people spend in total $1 million, but only manage to save $800,000. This economy has negative savings. By its nature, negative saving requires an economy (though not necessarily the government) to take on debt.
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Purpose: This paper examines and compares the order of economic savings against dissavings during the period of conflict and gains being made in the post conflict period primarily conducted through a United Nations sponsored study (1).
4 billion, and federal government dissavings was $582.
GDP, largely comprised of substantial dissavings (negative savings, thus requiring borrowing) by government, and only modestly positive savings by households and retained corporate earnings in the rest of the economy.
If the whole of the $787 billion stimulus package had consisted of an across-the-board tax cut, there would have been a large deleveraging of the economy with an increase in private savings without an equivalent cut in private spending--the increased private savings being matched by public dissavings reflected in the increased budget deficit.
Two MHSOs actually experienced Medicare dissavings that will require a turnaround in performance over the next 2 1/2 years.
Hence, these factors will contribute to a slower dissavings than the theory predicts.
Consumer research finds that low income households spend more than they make (4) and dissavings in an I-O framework would be counted as higher local expenditure.
As with the other components of structural reform, it will be more important to secure a viable system of support than to achieve abrupt reductions in financial dissavings.
9) The growing private sector imbalance has outweighed the trend improvement in the savings of general government, which has shifted from a position of dissavings in the early 1990s to positive gross saving of nearly 4 1/2 per cent of GDP in 1998.
Kelley reports that in India revenue officials were unable to cross-check the savings and dissavings information provided by taxpayers.
Second, the pattern of average savings is more or less as expected in 1984-85: dissavings in the lower income deciles, and increasing savings with increasing income.
This source of cost savings is a separate issue and may interact with cost savings or dissavings due to financial arbitrage.