Acton Institute Powerblog

Why we borrow and save money

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Note: This is post #87 in a weekly video series on basic economics.

Why do people borrow and save? How does it affect how we live our lives? And what affects the desire to borrow and save?

In this video by Marginal Revolution University, Alex Tabarrok explains the lifecycle theory of savings and how the supply and demand for loanable funds affects our decision to become either borrowers or savers.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Click here to see other videos in the Introduction to Economics series.

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Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).

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