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>That's why people don't have a higher savings rate. Most people are idiots when it comes to spending, No, not at all. People have a low savings rate because
by eli_gottlieb 10y ago
>That's why people don't have a higher savings rate. Most people are idiots when it comes to spending,
No, not at all. People have a low savings rate because they're poor: their wages are low compared to the cost of living. This is a systemic, economy-wide problem for the entire bottom 90% of the population. You can't save when you're facing "heat or eat" each month or trying to make student-loan payments before Social Security kicks in.
- rubyfan 10y agoThe entire 90% is not so poor that they can't save 10% of their income. It may be true at certain levels but not the entire 90%. It's about choices and so many people choose to pay for frivolous things like a cable or cell phone bill instead of saving. I'm convinced so many people have fooled themselves into believing the government will cover their retirement shortfall. The problem is ultimately they are probably right but government doesn't have capital to cover the shortfall (not even actual social security obligations it seems)... so they are likely going to take it from the ones that have managed to save for their retirement, wait and see.
- eli_gottlieb 10y ago>government doesn't have capital to cover the shortfall (not even actual social security obligations it seems)... If we eliminated the cap on how much salary is taxable for Social Security payroll contributions, all projected obligations and shortfalls would be covered. Social Security is being choked to death for ideological reasons, not starving naturally.