Savings may not always lead to investment from "summary" of The General Theory of Employment, Interest, and Money by John Maynard Keynes
The relationship between savings and investment is a fundamental concept in economics. It is often assumed that an increase in savings will necessarily lead to an increase in investment, as individuals and businesses are able to save more money which can then be used to finance productive activities. However, this assumption may not always hold true. In reality, the decision to invest is influenced by a variety of factors beyond the availability of savings. Even if there is a large amount of savings in the economy, businesses may not choose to invest in new projects if they do not see sufficient demand for their goods and services. This is because investment decisions are based on expectations of future profitability, which are influenced by factors such as consumer spending, government policies, and overall...
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