That’s actually crazy because in a capitalist banking system those funds are ideally reinvested into production via loans to firms. Although this is only because a reserve requirement is in place to limit how much can be lent vs how much there is in deposits.
Savings are seen as inefficiency because it’s money that large capitalists aren’t able to suck out of the workers.
That’s actually crazy because in a capitalist banking system those funds are ideally reinvested into production via loans to firms. Although this is only because a reserve requirement is in place to limit how much can be lent vs how much there is in deposits.