Investing Quote by Joan Robinson
“It is the rate of investment which governs the rate of saving, and not vice versa.”
About This Quote
Source Book: The Economics of Imperfect Competition, Joan Robinson, 1933
Investment determines savings because capital formation drives income, which then creates surplus to be saved.
In simple terms: Saving follows investment.
Key Takeaway
Invest first, then save.
Themes
economics
investment
saving
causality
Mood
analytical
thoughtful
Type
economic
theoretical
When to use this quote
- business planning
- personal finance
- government budgeting
- economic policy
Key Concepts
Keynesian theory
income effect
Questions to Reflect On
- How does your investment behavior affect your ability to save?
- What policies can boost investment to increase national savings?
A Different Perspective
If investment is low, savings may also be low despite intentions.
![“The very nature of economics is rooted in nationalism. ... It [was] developed ... in the hope of throwing light upon questions of policy. But policy means nothing unless there is an authority to carry it out, and authorities are national.” quote by Joan Robinson](https://sms4smile.com/quotes/img-quotes/eba/joan-robinson-11438_authority_the-very-nature-of-economics-is-rooted-i_15974.jpg)
