Savings Rate Question

Discussion in 'Economics' started by EqtTrdr, Nov 13, 2006.

  1. Viewed in the context of the average household, not big corporations/companies.

    This is in conjunction with the amount of debt in the average household, which has been rising. People used up all their savings to carry those debts. It's gotten so bad that people are using debts to service OTHER debts.
  2. Arnie


    The "Savings Rate" that gets talked about in the press is just the difference between the increase/decrease in wages, minus the increase/decrease in spending. It's one of the most useless statistics that the govt releases.....Wait, I take that back. It is the MOST useless statistic they release. They don't measure all. For instance, they don't take into account inflows to IRA or 401K's or money market accounts or bank accounts or savings accounts.....noting.....nada.....Am I clear on that. :D

  3. Got it, but isn't savings rate at like -1.9% now.
    For Chinese ppl, the savings rate are like 70% who's economy is growing faster????

    Let me guess if everyone will start saving more than we won't have inflation.....yuppie....yupieee:p
  4. Arnie


    My point is that it's a "savings rate" in name only. Do some research and you will see that what I say is true. I have no doubt the Chinese actually do save more than us, but I bet that is trending the other way as they become a more of a consumer society. I think if you measured what Americans are actually saving in retirement accounts and taking into account total household wealth, we are doing pretty well.

    Remember, there are lies, damn lies and statistics.
  5. bgp


    and we all lived happily ever after ? everything is wonderful ?

    everyone has benefited from the dividend tax break too ! we are all soooo rich ! we can keep spending beyond our means ! sure why not !