4 ms·

Overconsumption is biggest threat to the American Dream

• emodendroket 10y ago
  It seems like there is very likely a relationship between the explosion of consumer debt and stagnant or falling wages.
• labster 10y ago
  Ugh no. The main reason we have a problem with a lack of saving in the U.S. is that we spend like our parents did but are paid less than they were. If the wealth didn't always flow to the top, we'd be just fine. But sure, go ahead and blame the poors for not saving enough money.
  • antisthenes 10y ago
    I agree with you but I don't think the article blames the poors for anything. In fact it's quite evident that under stagnant wages and a constant level of consumption, the savings rate will fall. Of course someone could say it's possible to reduce consumption, but the poor already spend most of their incomes on bare necessities, so their consumption levels are likely to stay constant, unless you want them to starve. It's also the reason wealth in capitalism inevitably flows upward - since the poor spend a larger share of their income on necessities (housing, food, health care - the big 3, as I like to call them), their savings rate is necessarily limited.