I am trying to find a way to simplify how we might do this and try to look at it from the Bottom-Up and I think we could do this at the Kitchen-table level.
We all have a income of some sort which we will put on the table. This is the income of our countries. Our "GDP" (Gross Domestic Product) which funds our taxes of various, ultility bills, our morgtage/rent, food, etc, and then there is a bit left over, we hope, which we can spend or save. This is our personal "Federal Reserve" and we make our own decisions on how that is divi-ed up. We can spend anything left over on infrastructure (our homes) or we can build up a Fund which could be lent to Joe Bloggs and get a return, or put it in an investment vehicle for old age so we get a pension for life, whatever. These are the kinds of strategies countries have to devise for the future and we can compare our kitchen table Federal Reserve to see how that works to simplify the comparison with how our coountries use GDP.
We also have credit cards. We borrow, just like our countries do, and that has to be paid back into the future. If we pay interest on credit on what is left over from our kitchen table, then there is nothing left, or an even smaller sum, for our Spend or Save into the future. Many ofo us like to give to charity. So a bit is put by to fund causes that are important to us - just like our countries do with our GDP to give to international disaster funds.
If anyone out there has circumvented the complexities of How Do Economies Work?, some of us are in class eagerly awaiting tuition.... and no punch-ups in class - keep it civil.