Principles of Macroeconomics / Unit 4 MAC 0315 short lesson, about 20 seconds
Growth Requires Forgoing Consumption
Captions available
The idea
Building capital means producing something other than consumer goods, so growth is paid for by consuming less now. Saving is what frees the resources.
In practice
A student giving up wages to study is making exactly this trade.
Where people slip
This is unit one's opportunity cost at national scale: the cost of future output is present consumption.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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