Positive impact on economic growth

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Reference no: EM131023215

This feature claims that Ebenezer Scrooge promoted economic growth more when he was a miser and saved most of his income than when he reformed and began spending freely. Suppose, though, that most of his spending after he reformed involved buying food for the Cratchits and other poor families. Many economists believe that there is a close connection between how much very poor people eat and how much they are able to work and how productive they are while working. Does this fact affect the conclusion about whether the pre-reform or post-reform Scrooge had a more positive impact on economic growth? Briefly explain.

Reference no: EM131023215

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