Maybe. Or maybe folks need to save more for many reasons. Maybe folks should work until they simply can't work any more (after all, working is good for you... although you may have to find a new line of work in old age...)... but there is NO doubt that folks really should save more - from an economic consideration. Savings, you see, is really unconsumed production. Ergo, if you are able to save in the first place it means your lifestyle is likely supportable without undo risk and stress; your overhead is moderate leaving money left over.
At least I think so.
The problem is that savings, in the form of unconsumed production, decreases demand in the short term (and increases capital investment over the longer term). And I think that that is exactly what is happening. Of course, our dumb government is "stimulating" by the amount of the rough increase in consumer savings in order to avoid all appearance of a contraction.
"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estateIt will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people.”-Andrew W. Mellon, Secretary of the Treasury advising Herbert Hoover in 1929
Of course, Hoover did not follow Mellon's excellent advice. Can you imagine a sitting, Democrat Treasury Secretary giving that advice? Or even a Republican? In the "Land of the obese and the home of the something-for-nothing"? NAFC.
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