America's low savings rate

[Lawrence]

> Opinions differ on whether this is a negative; mine is that tax policy
> in the US has shifted what "national savings rate" means to the point
> where it can't really be compared around the world.  So it's one of
> those misunderstood terms that people use to get their point across: MY
> GOD, THE SAVINGS RATE IN THE US IS AT AN ALL-TIME LOW!!!
> I'm not sure what point they are trying to make.
> /jordan

You're not sure what point they are trying to make? Don't you think the
savings rate contributes anything to the health of the economy?


>Here's an example: over the last ten years, you've put the maximum into
>your 401(k); that's probably something like $40k pre-tax, which means>
>you "think" you put away about $25k.  But your balance shows over
>$120k, so you "think" you've put away 5x more than you really have.

Are you suggesting that if we had a massive bear market people would invest
more?