Saving and compactness. Common semantics concepts
07/3/2018 12:00 am
Dr Mostafa Kamel
The development of societies in the modern economy became subject to considerable development of population and habits we develop habits of the population improved their behaviour in terms of mutual trust in their daily dealings with each other, and to teach them continuously provides them with a good motive to improve the nature of thinking and understanding of the events surrounding And their correction to what is best and striving to achieve based on past experience. As well as improving their ability to judge other things fairly and more rational And logical.
The habits of the population decides to some extent nature treat any institutions that there is a direct correlation between the evolution of habits and behaviours in populations and the evolution of institutions in those communities, with populations and behaviors over the maturity and discipline is determined by the ability of institutions to expand their activities within the economy,
Generally institutions seeking to provide goods and services to all segments of the population in accordance with their behaviors in consumption and their taste and type of dealing with those institutions.
So the population sought to develop those habits continuously leads the growth of their prevention and understanding to deal with each other and with the institutions and with the regulations and legislation, and that supports regularity in population behaviour of the sponsoring laws of those behaviors (carried out), any regulatory environment Laws and regulations include meshes and chime in and interact with good habits about bad habits For the population.
Most people today when I receive the income divide it into two parts first goes to consumption and savings and second as stipulated in most economic theories that sought to analyze the behavior of individuals in consumer decisions. And savings.
That which concerns us here, the second part is saving, so that saving as much perspective that portion withheld from income allocated to consumption, and this notion somehow misleading and will be Clear now.
Trimmed part of the unallocated income for consumption not all savings but part of it called the emergency reserves to cope with emergencies such as illness, damage to home computers, the trip. Etc.
The other part of it is called energy but only if it is checked in the banking and financial institutions, which achieved a cash dividend and it is what is known as interest rate, otherwise no if this person kept possession without deposited at banking and financial institutions it will turn The hoard.
And compactness means that the remaining part of the above ad hoc income unemployed without benefit of it (no cash dividend Anya to her), and according to the logic of economic theory, population returns in good savings in support and development institutions and revive the economy.
While the population habits bad compactness because it prevents the flow of funds to these institutions leading to poor performance and reduced its activities and its effectiveness reflected negatively on growth.
Beat the people in Iraq, where compactness habits tends mostly to keep more cash than the rest of the origins of wealth, then the question of the distinction between what's good from those habits (savings) and what is bad (compactness) is the most important factor to support and develop the institutional and economic environment Working in it.
Where are your banking habits among the population greatly reduced, leading to limited financial and banking activities, since the ratio of deposits to GDP in Iraq in 2015 (30.9%) In 2016 (31.7%) It is low in comparison for example in Egypt, where the proportion of 2015 (80.6%) In Morocco (66.6%) In the same year.