If the society chooses the save more money, more resources are be able for investment in new plant and equipment. This would lead to raise labor productivity wage and incomes. Due to 'ten principles of economics' presented in chapter 1, people face tradeoff. In the case society is the one who have to face it, the fundamental tradeoff that society has to face in the tax system.First one is the tax system discourage saving by taxing the return to saving quite reavily.