Discussion in 'Economics' started by Debaser82, Jul 30, 2009.
Mentioned it on different occasions here. 15.6 % is a staggering number taking into consideration that Germany's savings rate fluctuates between 11-13 % since WW II.
The real question is that, based on that, if the US consumer joins the savings party, who will fuel the global growth situation? Who is going to buy all that worthless crap?
The problem for many Europeans is that the savings rate is calculated based on disposable income and disposable income sucks in Europe, thanks to high tax rates and costly social security systems. Europeans are saving what they can of what little they end up keeping after taxes.
And EU tax rates are only going to get worse. I can't wait for the announcements of the new German government after the September elections. The tax hikes are going to be brutal by all estimates.
This is why the US is starting to really push China to consume, while at the same time trying to reorganize to become more export oriented.
Don't forget tax evasion is a national sport in europe.
Yes, but only for self-employed, not for the majority of the middle class
Well, the Chinese government has to let the Yuan appreciate, but no one seems to want to pull THAT lever.
Instead, by estimates nearly 75% of the Chinese stimulus has gone into either the stock market, real estate or other speculative investments and NOT in designing a better consumption model internally.
Yep, this will end lovely.
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