Skip to main content

Household & Business Spending Flow

Where does household spending come from? 

Household spending comes from household earnings-- wages, salaries, rents, dividends, profits, or whatever other payments householders receive from the work they have performed. It also comes from transfer payments from the government such as Social Security checks. The flow of spending can be raised if households draw from their savings accounts, borrow money, or liquidate stocks or bonds.

Like the household sector, the business sector buys its ordinary day-to-day requirements from the money it makes from sales. However, there is one huge difference between household spending and business spending. The business sector does not normally save money. On the contrary, it spends more than it takes in. 

How can corporations buy more than they take in?

Business does not spend all of its earnings. It saves a portion of these earnings as "profits," and meanwhile borrows additional financial revenues from banks or by selling its stocks and bonds. These additional resources-- the capital funds it raises-- are also spent to pay for capital improvements, buying new equipment, or other industry-specific costs.

Consider your interests gauged. Check back for the next entry to discover how the two sectors interlock. The picture below should give you some idea...

Thanks for Reading,
Matthew



Comments

Popular posts from this blog

The Synth Sounds

I am excited to share that my first jazz project is nearing completion. (Also why this is my first post this month).

Other than piano, you can definitely expect to hear sounds of 1980's and 1990's-era synthesizers filtered throughout the upcoming album.

I admire the newer sounds we have today, but none of them quite replicate the original, synth-led sounds of 80's and 90's music.

In my opinion, 80's and 90's sounds present the perfect crossover of analog and digital mixes that were limitless in use and expression.

It is no wonder that modern synthesizers today still draw inspiration from 80's and 90's technology. It was simply some of the most innovative audio machinery ever created.

No shame here. Expect 80's and 90's vibes to come your way in my upcoming project.

Stay Tuned!!!


A pile of my module racks from the 80's and 90's used and simulated on my upcoming jazz album.

CFC Youth Day

CFC Youth Day was nothing short of remarkable.

Children, teenagers, young adults (my generation) sang, danced, praised, and worshiped God with passion, love, joy, energy, and sincerity.

We led, both, the 8:00 AM and 10:00 AM services and the LORD ministered through us in His own powerful way.

I am very grateful to have preached at the 10:00 AM service. (Came from 2 Timothy 1:7).

Something amazing happens when we move ourselves out of the way and allow the LORD to communicate His Word through us. He does for us what we cannot do for ourselves. And when you summarize the meaning He brings to life, you realize that all the of the glory belongs to Him.

The reality of God's presence gives life, and everything we involve ourselves in, brand new meaning.

God's awesomeness was displayed in a monumental way today. A flame was kindled in our youth and the church as a whole.

Today was special.

Big thanks to everyone who helped make today such a great success, you know who you are!

Churc…

Birdland

Last night, the very last night of our NYC vacation, my parents and I attended a jazz show at the legendary Birdland.

GRAMMY nominated jazz vocalist Karrin Allyson was in the house.

Before I go any further, I must give kudos to Allyson and her band consisting of Miro Sprague (piano & Rhodes), Jeff Johnson (upright & electric bass), and Jerome Jennings (drums). They were great!

Allyson's clear voice and the band's musical prowess made for a top-quality performance. There is no room to doubt: everyone on the stage last night were professionals.

Being at Birdland is an experience, if anything, because of its rich history in providing a venue in entertainment-rich Manhattan for jazz artists and musicians.

This is the same Birdland that George Shearing wrote "Lullabye of Birdland" about and artists such as Ella Fitzgerald, Dexter Gordon, Lionel Hampton, Sarah Vaughan, Quincy Jones, Chaka Khan, Amy Winehouse, Mel Torme, Erroll Garner, and Nikki Yanofsky later sang …