Why low saving happens on Australian household?

Discussion in 'Economics' started by wan168, May 7, 2007.

  1. wan168


    Over current years the household sector in Australia has become net borrower which is consumption exceeding income, in this condition makes low savings for Australian households.

    This effect does not mean that there are not some high savers in Australia, but rather their surpluses are balance by the deficit of dissavers such as retirees.

    Is this happens because of Australia’s highly developed financial sector and wide range of debt instrument so this is easier for Australian residents to borrow for consumption expenditure. (from my opinion)

    Please feel free to comments and express your view to help me find out the reasons

    Iwan Chandra
  2. wan168


    does this happen in US too?
  3. Maybe the rates the banks pay isn't as high as the rate at which money supply is increasing?

    Might as well invest in hard assets if you have extra money, otherwise.
  4. easy access to borrowings...

    advertising and marketing everywhere, it's so easy to find something to buy.

    just my 2c
  5. dinobott


    people in aus like to spend rather then save.
  6. Its the same as the US.

    Growth in house values. Loans on your equity. Why drive a ford when ur neighbour's driving a bmw.

    Advertising and cultural driven expenditure despite the highest tax environment in the real world.

    Paid for by mineral exports to Asia. How bad is it to sell Uranium to china and india. Is the arms supplier responsible for the killings (the coal salesman for the greenhouse gas emissions).

    De Nile is a river in Africa :)