5. Influence of personal savings on debt level
During previous analysis we were not dealing with variants where employees save some part from their wages, so their realized buying power is indeed lower than the one delivered during process of production. If this happens there is a significant increase in pace of debt growth as wages constitute significant part of buying power.
If there is no corresponding compensation from state as higher percentage of transfer rate, there is fall in GDP, debt growth and increase of costs for monetary and fiscal policy as well.
During borderline scenario where employees would save same percentage from their wages as is the profit margin of companies with 50% level of transfers the resulting profit would be 0 and tax revenues also 0. The state debt would be financed only by employees.
To start creating profits again we would need higher level of transfers, definitely above 50%.
The higher level of savings, the higher costs of state to maintain the desired level of profits through transfers and more transfers as % are needed. Increase in savings has higher negative impact to indebtedness then the same percentual increase of profit margin.