It would reduce savings and thus decrease the amount of investment capital available in the society.

First, I believe an income tax would reduce savings.

Higher deficits reduced total national savings and therefore undermined capital investment.

Reducing the deficit, if it slowed economic growth, might therefore actually reduce savings, too.

Yet none proposes policies to raise real wages or to reduce savings.

In fact it has been running deficits over the decade that have reduced savings by 2 to 3 percentage points.

The report said the decision would reduce projected savings by $385 million.

That would require reducing Japanese savings, increasing domestic spending or some combination of the two.

The Federal red ink has crippled growth by reducing national savings and capital formation.

Falling spending leads to reduced incomes and unemployment, which reduces savings again.