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There is only one goal. That is to be whole again.

There is only one goal. That is to be whole again. How human beings live and work determines whether they remain whole or are split. ...

12/8/13

saving = investment

Another key identity in economics is that between saving and investment:

saving = investment

Once again economics as the world knows it interprets this very narrowly to mean what I put away in terms of money is exactly what is available for the creation of capital. I put away $100 in saving in my bank and $100 is made available for some entrepreneur who can now borrow that money to buy some capital, perhaps a machine. But once again we are only focusing on one tiny aspect of the equation, that of quantity

If we acknowledge the equation

saving = investment

in its holistic sense then it must mean primarily that the character of the saving equals the character of the investment; that the nature of the saving equals the nature of the investment; that the purity of the saving equals the purity of the investment; and the multi-generational effects of the saving equals the multi-generational effects of the investment.

Furthermore, our key principle of Gandhian economics teaches us that means and ends are convertible terms. Thus the qualitative attributes of the investment undertaken must be equal to those of the saving! If we are truly awake to the fulness of the meaning of these terms we would not mess around with them so freely and take careful steps into this territory.

We would look at not just how much we save but at how we save. Hoarding out of fear, out of a desire for profiting at the expense of our neighbor is not a positive form of saving and in its investment will cause nothing short of grief. On the other hand saving our seed, our precious culture and its related work implements, our books and knowledge, our live capital, lovingly, without fear will undoubtedly create a beautiful investment.

If our world looks so dark, if in the midst of our financial prosperity the outlook for our future and our children's future is so grim it must be because we have misunderstood the basic equality between saving and investment.

I hold that to be a crime against wisdom.