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AR15.COM
1/14/2009 6:40:55 AM EDT
I heard an economic expert on Bill Bennet's morning show the other day. He said something I found amazing.
In the good Bush & Clinton years, people were consuming 105 to 110% of their income. The latest numbers say people are only consuming 52% of their income. Those are some strong numbers and one good reason why I think goverment spending is wasted now. There is no multiplier. If people get cash, they are just squirreling it away.

Could America actually become a nation of savers like Japan?
1/14/2009 8:18:27 PM EDT
[#1]
Some of it is going into savings.  I'm betting a lot of it is going to paying down the debts that were run up when they were overspending.
1/14/2009 8:20:02 PM EDT
[#2]
America used to be a nation of savers. It isn't antithetical to capitalism, you know.
1/15/2009 10:12:58 AM EDT
[#3]
Yes, we did save, but that was 40-50 years ago.
Maybe as the population ages, people will start acting smarter financially.
1/16/2009 6:51:17 AM EDT
[#4]
Quoted:
I heard an economic expert on Bill Bennet's morning show the other day. He said something I found amazing.
In the good Bush & Clinton years, people were consuming 105 to 110% of their income. The latest numbers say people are only consuming 52% of their income. Those are some strong numbers and one good reason why I think goverment spending is wasted now. There is no multiplier. If people get cash, they are just squirreling it away.

Could America actually become a nation of savers like Japan?



I doubt those numbers are measured in the same way. In any case, "saving" in American terms today means reducing debt and only because no one is loaning them any more money.
1/16/2009 7:20:56 AM EDT
[#5]
Quoted:
America used to be a nation of savers. It isn't antithetical to capitalism, you know.


Saving is actually an important part of modern capitalism as your savings in the bank if capital that others can use on a limited basis...

1/16/2009 7:22:49 AM EDT
[#6]
Quoted:
I heard an economic expert on Bill Bennet's morning show the other day. He said something I found amazing.
In the good Bush & Clinton years, people were consuming 105 to 110% of their income. The latest numbers say people are only consuming 52% of their income. Those are some strong numbers and one good reason why I think goverment spending is wasted now. There is no multiplier. If people get cash, they are just squirreling it away.

Could America actually become a nation of savers like Japan?


Long-term? Probably not, unless things get much worse.
1/16/2009 7:40:48 AM EDT
[#7]
Quoted:
Saving is actually an important part of modern capitalism as your savings in the bank if capital that others can use on a limited basis...


That is what I was taught, and how I believe it should be.

"Consumer" driven capitalism is too short sighted for long term success.
1/16/2009 7:48:01 AM EDT
[#8]


America and Americans have been on an unholy spending spree since the early 80s.  Time to pay the piper.  


1/16/2009 2:08:17 PM EDT
[#9]
I read somewhere that consumer spending was 2/3s of the US economy. A drop in spending that large can't be good.
1/16/2009 2:55:53 PM EDT
[#10]
People are spending less because they are scared. Because they are scared to lose their job. And evidently they maybe getting smart, they are SAVING for the first time in 60 years! People need to pay down debt and save some cash.

the more they save, the better for banks. Cause they wont be loaning out money and the capital they gain will be better for their balance sheets!

I hope america becomes savers, it would be really good for business. Debt gives you fast cash and makes a boom, but Debt will bust you faster than anything.

Americans may have consumed 105 to 110% of their income, but that doesnt mean it wasnt supplemented from invesments or savings. They dont include that.