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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 wea
by 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 agoI 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.