In the Created to Worship Bass shirt macroeconomy, we have spending, of a certain amount, creating income for the recipients of that spending in the same amount. This is gross income, as we are including all transfers of ownership of money for a purpose. And the accounting of this spending does not describe in any way shape or form any change in the level of wealth, since all it describes is wealth in the form of money having its ownership be transferred from one person or entity to another. And we have added another element to the definition of the savings I am calling “net production” that does describe changes in type and amounts of wealth.
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Looking at Created to Worship Bass shirt this I realized that spending does not directly cause a change in level of wealth. It is only the net production of wealth that affects the level of wealth. And even though spending, and the economic activity it promotes can lead to production of wealth, a given amount of spending and income does not absolutely or uniquely determine the amount of net production that occurs. Further, unlike in microeconomics, in macroeconomics spending does not represent a “depletion of wealth”, just a transfer of ownership of money, where that money still continues to exist in the same amount. In macroeconomics, any change in the level of wealth, including the depletion of wealth, we must account for by a direct accounting of what happens to the amount and type of the wealth.
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