Concept in Definition ABC

It is called saving to the difference of money with which a person or a company has and that is determined by the economic remuneration that it receives, I preferably refer to the sum of money that comes from the performance of a job or it can also be, that In addition to this, the person has or has an additional income such as the rent of a property that he maintains rented, with the consumption you make. Although this last situation, as such, does not occur in companies, they can obtain an income additional from the exploitation of some good that they own and use it to increase the level of savings of the themselves. For example, a business that sells antiques, can also find an extra through the rental of its products.

But, clearly and obviously, the ability to save will depend largely and absolutely on what the person receives as income, since if his income is less than what is considered basic basket, surely, that person will not have the capacity for the same, nor for

think remotely on it, sadly. Saving is the basis of fortune, maintains the old proverb, for which, without a doubt, the possibility of generating an accumulation wealth is based, first of all, on income and, to a lesser extent, on the volume of expenditures of a person or a household.

Meanwhile, saving can be classified into two main types, the private savings and public savings. And although it is a bit obvious, the clarifications are still there because this is our need in ABC Definition: the private one is that which people carry out individually, or at a larger level, the organizations private such as companies and families. In return, the public savings It is only the task of the state in its three levels of government (national or federal, provincial or state, municipal) and is due, to a greater extent, to the taxes charged to the inhabitants of each nation. So, in an ideal case (because unfortunately there are also the real ones ...), if the State does all the duties well, with that saving that is called in macroeconomic terms fiscal surplus, you will be able to build schools, roads, hospitals and provide assistance to those who need it most, but if you do not do so you will suffer what is known as "the cuckoo" of any economy: the fiscal deficit, in which public spending exceeds the ability to save.

It is clear that the saving of a nation, which supposes the sum of public and private saving, will also depend on the economic policies that the current government implements so that it grows; if things are not done well, they will be responsible for a failure in this regard. The processes of administration deficient or even fraudulent lead to major economic crises, in which the lack of savings in the so-called "funds countercyclical "causes the impossibility of financing current expenses, such as the payment of salaries or the maintenance of the so-called chains of payment. Thus, in situations of this nature, currency devaluation, inflation, lack of supply of resources basic (food, medicine) and perhaps the worst of the consequences of the absence of savings: the lack of confidence.

For example, a specific case of bad policies can be found in Argentina, after the political-economic crisis that the country suffered towards the end of 2001 and which ended with a "financial corralito", in which the savings of many Argentines were trapped and immobilized. This sort of confiscation of private funds was the trigger for a subsequent situation of null reliability in the financial system and in the State, which caused people not to deposit one more peso in the banks and, what is even worse, that they have taken their savings to another nation that offered them higher safety in this sense.

Savings Topics