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Capital Gains, Pension Funds and

Bibliographic data

Works

Document type:
Works
Collection:
Josef Steindl Collection
Title:
Capital Gains, Pension Funds and: The Low Saving Ration in the United States.
Author:
Steindl, Josef
Scope:
Konvolut, 48 Blätter, Typoskript mit zahlreichen Anstreichungen und Anmerkungen sowie einzelnen handschriftlichen Notizblättern, teilweise nummeriert
Year of publication:
1990
Source material date:
[vermutlich um 1990]
Language:
English
Description:
Reliability of statistical data, household saving as contributions to pension funds or life insurance companies.
Note:
Entstehungszeitraum vermutlich um/vor 1990.
Related work:
Steindl, Josef: Capital Gains, Pension Funds and the Low Savings Ratio in the United States. In: Banca Nazionale del Lavoro Quarterly Review, Vol. 43, Issue 173, June 1990, S. 165-177
Topic:
Saving and distribution
JEL Classification:
E01 [Measurement and Data on National Income and Product Accounts and Wealth, Environmental Accounts] E21 [Macroeconomics: Consumption, Saving, Wealth] G23 [Pension Funds, Non-bank Financial Institutions, Financial Instruments, Institutional Investors]
Shelfmark:
S/M.49.2
Rights of use:
All rights reserved
Access:
Free access

Full text

11 
action of the multiplier additional consumption,increasing incomeg 
i. f ' 
it 
until the total saving out of them equals the original consumption 
which is equal to the realised capital gains. Thus the saving 
which corresponds to the realised capital gains has been recreated 
in a macroeconomic sense. At the same time an expansion of income 
and consumption has been engendered by the boom in land values, 
financed presumably by the banks. 
Iiw 
As already stated the consumption and .income appear in the 
1 
national accounts^ but their cause and origin is hidden. The 
consumption equivalent to the capital gains comes out of the blue 
ut 
sky since the capital gain is not income, and.therefore leads to 
L CtrlV/PA? 
an apparent reduction of the- saving^,ratio. The SNA in fact 
erroneously supposes that the increase in the value of land,shares 
I SxU-^ 't {-) '£«■ kv 
etc is financed out of existing saving/, that is it is—equivalent 
t6 dissaving. In reality it is financed by the realised capital 
£< LIvm 
gains which are saved* directly^or indirectly^ by the action of 
the multiplier. 
The case of the pension funds is not different from that of the 
> 
land. The gain in the share value created by the take-overs leads 
to saving which is realised by the corporation in form of 
. . 5 
reduction of the contribution. The employees in reality do not 
suffer a loss because the capital gains offset the loss in 
contributions. 
Ill 
After so much statistics a word on economic policy. There has been 
a system of national old age insurance even before there existed 
pension funds. Its principle has been that the active people 
/ p wltj Us) h o'*-" 0 i/ ^ 
support the retired old ones/. This i& in fact as it always has 
. f- 
been, and as,in essence, it must be under any system; but it was 
made into a national institution with fixed contributions by
	        

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Steindl, J. (1990). Capital Gains, Pension Funds and: The Low Saving Ration in the United States.
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