On Savings, Part 2

When ordinary people think of savings, they always think of money that were put into banks by individuals, or private savings. However, this is only half the picture, because the government also saves.

Don't Forget the government

The definition of public savings, saving by the government, is simple:

Tax - Government Spending

This definition makes sense because for the government, tax is income so the equation above can be rewritten as:

Income - Spending

or the definition of savings given in part 1.