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How can anyone increase the amount of real resources by letting people save more money.

As I understand they way this works, in a macroeconomic analysis, increased savings by individuals results in more investment in capital resources, which leads to more productive capability.

In other words, if I invest in the bonds of a large company, they will aggregate my investment with that of others and buy a machine tool which will allow more production with less labor input, and possibly even less raw materials. Same with stocks.

Savings does lead to an increase in real resources.

The great big glaring exception is purchase of government bonds, where the money is used to increase spending. This does not increase the amount of real resources.
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