3 ms·

> Incorrect. Why did you ask the question if you thought you already knew the answer? By definition, savings are being saved. Investments are being invested. I

> Incorrect. Why did you ask the question if you thought you already knew the answer? By definition, savings are being saved. Investments are being invested. If you think that savings and investments are synonymous then you are wrong. According to https://www.marketwatch.com/picks/heres-exactly-how-much-americans-have-in-savings-at-every-age-and-yikes-heres-what-they-should-have-01659384531 https://www.marketwatch.com/picks/heres-exactly-how-much-ame... the median American has accumulated a measly $6,400 in their decade before retirement. Money they will then need to use when they are retired and without income. And that is in one of the richest countries in the world. So it is correct to talk about borrowers and savers as permanent classes. Right now, profits are record high while real salaries are shrinking due to inflation (i.e. due to massively raised prices). You have to be a fool not to be able to connect the dots.

kspacewalk2 4y ago
>Why did you ask the question if you thought you already knew the answer? "Incorrect" referred to "savings are money not being used", i.e. the rationale for your answer, not your answer itself. >If you think that savings and investments are synonymous then you are wrong. You just need to think it through a few more steps. For example, what do banks do? They take your savings and invest them. Bottom line is, savings are absolutely, definitely, and crucially not "money not being used". >the median American has accumulated a measly $6,400 in their decade before retirement. No, that's not what the number is. The number is savings, but excluding retirement funds. So if I put money into my Roth IRA or 401k, it's not counted, even though that can be just money sitting in a bank account or a GIC, i.e. very straightforward savings. >Right now, profits are record high while real salaries are shrinking due to inflation (i.e. due to massively raised prices). Yes, we have a big problem with inflation, and the Fed (and other central banks) are addressing it.
- bjourne 4y ago
  Read the sibling's comment because this is incorrect: > Bottom line is, savings are absolutely, definitely, and crucially not "money not being used". By definition, "savings" are not being used. Had they been used trickle-down economics would have been an awesome policy. You'd just put more money on rich peoples' bank accounts and the money would magically reappear in someone else's pockets! The median American retirement fund is about $90,000. Regardless how you count that is not a lot.

kspacewalk2 4y ago

>Why did you ask the question if you thought you already knew the answer? "Incorrect" referred to "savings are money not being used", i.e. the rationale for your answer, not your answer itself. >If you think that savings and investments are synonymous then you are wrong. You just need to think it through a few more steps. For example, what do banks do? They take your savings and invest them. Bottom line is, savings are absolutely, definitely, and crucially not "money not being used". >the median American has accumulated a measly $6,400 in their decade before retirement. No, that's not what the number is. The number is savings, but excluding retirement funds. So if I put money into my Roth IRA or 401k, it's not counted, even though that can be just money sitting in a bank account or a GIC, i.e. very straightforward savings. >Right now, profits are record high while real salaries are shrinking due to inflation (i.e. due to massively raised prices). Yes, we have a big problem with inflation, and the Fed (and other central banks) are addressing it.

bjourne 4y ago
Read the sibling's comment because this is incorrect: > Bottom line is, savings are absolutely, definitely, and crucially not "money not being used". By definition, "savings" are not being used. Had they been used trickle-down economics would have been an awesome policy. You'd just put more money on rich peoples' bank accounts and the money would magically reappear in someone else's pockets! The median American retirement fund is about $90,000. Regardless how you count that is not a lot.