Sustainable development from "summary" of The Economic Consequences of Peace by John Maynard Keynes
The problem of the industrial and commercial future of a country has been raised, dealt with, and disposed of in an extraordinarily summary fashion. It is assumed that the proportion of the annual output which is needed for capital development is a fixed quantity, and that the problem is as simple as that of the housewife who has to decide how much of the weekly budget to allocate to food, rent, and clothing. But the proportion which a country can save is not a fixed quantity, and a country which is already saving a high proportion of its income may be unable to save any increased proportion without reducing its standard of life more than would result from the capital development which it would thus be enabled to finance. And if a country is saving a low proportion of its income, it does not follow that it can increase this proportion without limit. Further, the proportion which a country can save depends, not only on the stage of development which it has reached, but also on the speed with which it is accumulating capital. It is necessary to distinguish between the rate of saving and the amount of saving. It is only the former which is governed by the stage of industrial development which a country has reached. The amount of saving depends also on the rate, and the rate, in its turn, depends on...
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