Spending is the Baby Yoda Cocain let it snow shirt, sweater transfer of ownership of money from one person or entity to another. The spender gives the money to the recipient of the spending, and that amount of spending becomes income for that recipient. In the macroeconomy total spending equals total income so that net income equals zero. In this model the spending we are talking about is gross spending. In other words when we are accounting for spending we are accounting for all the spending, all the transfer of ownership of money. The spending of money does not, in and of itself, create wealth or change the level of wealth in an economy. Spending may be the reason that a particular type and amount of wealth is created, but the spending and therefore the income, is not the wealth. When spending occurs, normally, it is associated with some production of wealth.
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The wealth is Baby Yoda Cocain let it snow shirt, sweater produced directly in response to some spending or in anticipation of some future spending. The spending occurs to activate some labor or service that cause an increased production of wealth, or leads to the preservation of some amount of wealth. Spending , and its complement, income, is almost always associated with wealth production, or wealth preservation. The accounting of the net production of wealth is done on the wealth axis. The spending and therefore the income earned in this time period is calculated on the income axis. They are variables that interact and affect each other but they are still independent variables. Different levels of net production can be associated with the same amount of spending. Different levels of spending can be associated with the same amount of net production. They are independent variables.