[This is part of the series: The Complete Guide To Economics 101.]
What is the stock vs flow concept in economics?
Well, the difference between stock and flow has to do with time.
The concept of “stock” is, in a sense, independent of time.
While the concept of “flow” is bound by time.
See, if you say, “I got $50,000” – that doesn’t mean much – because time has not been added to the mix.
“I got a $50,000 trust fund.” is much different than saying “I got $50,000 per month at my new job.”
Another way I have heard it explained is a lake flowing into a river – the lake is the stock of water, and the river is the flow.
The same is true for writing/blogging.
Your daily post is the flow, while your accumulation of posts is the stock.
