THEORYOFEMPLOYMENT
alsoincreasesaggregatewealthfailstoallowforthepossibilitythatanactofindividualsavingmayreactonsomeoneelse\'ssavingsandhenceonsomeoneelse\'swealth。
Thereconciliationoftheidentitybetweensavingandinvestmentwiththeapparent\'free-will\'oftheindividualtosavewhathechoosesirrespectiveofwhatheorothersmaybeinvesting，essentiallydependsonsavingbeing，likespending，atwo-sidedaffair。Foralthoughtheamountofhisownsavingisunlikelytohaveanysignificantinfluenceonhisownincome，thereactionsoftheamountofhisconsumptionontheincomesofothersmakesitimpossibleforallindividualssimultaneouslytosaveanygivensums。Everysuchattempttosavemorebyreducingconsumptionwillsoaffectincomesthattheattemptnecessarilydefeatsitself。Itis，ofcourse，justasimpossibleforthecommunityasawholetosavelessthantheamountofcurrentinvestment，sincetheattempttodosowillnecessarilyraiseincomestoalevelatwhichthesumswhichindividualschoosetosaveadduptoafigureexactlyequaltotheamountofinvestment。
Theaboveiscloselyanalogouswiththepropositionwhichharmonisestheliberty，whicheveryindividualpossesses，tochange，wheneverhechooses，theamountofmoneyheholds，withthenecessityforthetotalamountofmoney，whichindividualbalancesaddupto，tobeexactlyequaltotheamountofcashwhichthebankingsystemhascreated。Inthislattercasetheequalityisbroughtaboutbythefactthattheamountofmoneywhichpeoplechoosetoholdisnotindependentoftheirincomesorofthepricesofthethingsprimarilysecurities，thepurchaseofwhichisthenaturalalternativetoholdingmoney。Thusincomesandsuchpricesnecessarilychangeuntiltheaggregateoftheamountsofmoneywhichindividualschoosetoholdatthenewlevelofincomesandpricesthusbroughtabouthascometoequalitywiththeamountofmoney[Page85]THEMEANING
OFSAVINGANDINVESTMENT