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gnome
Registered: Jun 2002
Posts: 10007 |
12-29-08 12:27 AM
I believe much of it stems from the US Gummint... they encourage profligate spending and punish saving. The REAL reason the Gummint does that is so it all masks the effects of deficit spending.
When I was a kid, my "things" were a bicycle, basketball, ball glove, chess set, fishing pole... (none of which were bought on credit)
I made spending money by washing neighbors cars, mowing lawns, shoveling snow, babysitting... do kids do these things today?
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mogar
Registered: Dec 2008
Posts: 5 |
12-29-08 12:50 AM
When I was a teenager back in the late 60 early 70’s a welder at any old shop could own and pay for a house, have a wife and kids and he could make it. Also I was earning about 6 to 7% on a savings account.
Today you need two good paychecks to make it. Savings accounts pay less then 1% today. It is no surprise to me that people don’t save because it’s a suckers bet today. You don’t get paid any thing if you do it. You are probably better off just sticking it in a safe somewhere then putting it in a savings instrument; at least you will get your money back. The inflation figures reported by the government don’t even pass the laugh test. They only apply to you if you live in an abandoned auto in a Kmart parking lot and you are on food stamps.
So if you save it and can manage to make say 3% real inflation will eat more then that and to add insult to injury the IRS will tax you on it.
Is it really any surprise that we don’t save when the entire system is geared to push people to burrow? The purchasing power of the currency is always going down. The rates paid to savers have all but vanished. I have savings but I view any dollars I have as a wasting asset and I am always on the lookout for hard assets to convert my savings out of the little green coupons.
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Tracy McGreedy
Registered: Jun 2007
Posts: 520 |
12-29-08 12:59 AM
It is because America and many of it's corporation care about the bottom line and to induce growth, they encourage their penniless populace to go further into debt. "They" have created temptation and greed via credit and interest. "They" suggest consumption thru invisible indebted servitude. This country grows on consumption. The pendulum swings until it cannot and has swung this way for some time now with slave wage in 3rd world countries to produce our goods. At some point, these 3rd worlds figure out if we kick out the debt ridden Americans off our islands and eat all the fish ourselves, we'd be happier. Which is what happens Now. Ultimate destination is socialism.. as is any society that finally peaks and "matures".
Quote from Debaser82:
I live in that pighole of a socialist europe where the government takes 50% of your salary, you don't get to work for your own pockets untill after the summer, and still people over here save more then 10% of their income.
What gives?
Is it because the FED has run a more inflationary course then the ECB eroding the purchasing power of the dollar causing people to search for alternatives?
Or is it the US spirit where people are always on the outlook for the next bubble to grow so they can hop on and become rich overnight?
Or is this how capitalism is supposed to work? If you can't cut it bad luck and good night see you in the souplines?
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seauouch
Registered: Nov 2008
Posts: 33 |
12-29-08 01:03 AM
Quote from mogar:
When I was a teenager back in the late 60 early 70’s a welder at any old shop could own and pay for a house, have a wife and kids and he could make it. Also I was earning about 6 to 7% on a savings account.
Today you need two good paychecks to make it. Savings accounts pay less then 1% today. It is no surprise to me that people don’t save because it’s a suckers bet today. You don’t get paid any thing if you do it. You are probably better off just sticking it in a safe somewhere then putting it in a savings instrument; at least you will get your money back. The inflation figures reported by the government don’t even pass the laugh test. They only apply to you if you live in an abandoned auto in a Kmart parking lot and you are on food stamps.
So if you save it and can manage to make say 3% real inflation will eat more then that and to add insult to injury the IRS will tax you on it.
Is it really any surprise that we don’t save when the entire system is geared to push people to burrow? The purchasing power of the currency is always going down. The rates paid to savers have all but vanished. I have savings but I view any dollars I have as a wasting asset and I am always on the lookout for hard assets to convert my savings out of the little green coupons.
100% right, I love how its in vogue now to chastise American taxpayers for not saving. Why the hell would anyone save when interest rates on savings minus inflation is negative??? The government inflation rates are a joke, sure computers & TV's are cheaper now than 10-20 years ago but important stuff, housing, education, health care. food & energy have gone up 500% since the 80's. My grandparents bought their house in the 60's for 9k the same house is worth 800k today. The average house in my town in 500k ( even after the RE bubble burst ) How is the average person supposed to buy a house & start a family without going into massive debt ?
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marketsurfer
Registered: Apr 2002
Posts: 5766 |
12-29-08 01:46 AM
Saving indicates a profound lack of confidence in the future.
worst yet, it is reflective of a severe lack of confidence in YOUR future earning potential.
Invest aggresively, take risks, be flexible, spend and enjoy--its best for everyone...
surf
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RiceRocket
Registered: Oct 2006
Posts: 1128 |
12-29-08 01:49 AM
Americans have a strong belief that you are what you think. Therefore, they believe that if you spend your money, and expect more to come in the future, you will always have more money.
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