Question

Why can growth only occur if current consumption is sacrificed? (think about this in terms of what college students give up to obtain in the future)

Answer 1

Answer - Investment is the main driver of growth because of its dual nature. Investment increases aggregate demand as well as increases production capacity of economy. Capital accumulation happens because of investment. That is why investment is necessary of future growth. Where does investment come from? Producers demand money for the purpose of increasing production capacity. Fund for investment are supplied by households. Income can be divided into part,

Income = consumption + saving

People consume less that is why they are able to save. They sacrificed their current consumption in order to save. These savings will be moved by capital market and invested in to business which further gives higher return. Thus it called that growth can only occure if current consumption is sacrificed.

Students have time as resource. The time can be spent on study, gaming, chatting with friends, touring, adventure, and many more activities. Student those spent time on study will have better knowledge in every sphere of life. They can expect better salary package in their future which is necessary for better life. Student should have to sacrifice their other activities except study. Time can be saved on other activities and invested on study will result higher return in the future.