America's low savings rate

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Sun Aug 19 17:25:33 PDT 2001


Dennis Redmond says:


> So the decline in the savings rate *is* significant for what it
> indirectly says about social polarization in the US ...

Huh? The savings rate is going down because the have/have-not gap is getting wider? How does that follow? The question I don't see being addressed is who the used-to-be-savers-who-aren't-anymore are? I think it's always been the haves who saved, and they save less now because they think they have "enough" in savings; the official numbers are far lower than the sum of the balances, but nevermind that. It used to be that they'd save after-tax money and it would grow slowly. Now they save pre-tax money and it grows quickly. So it becomes the savings vehicle of choice, and any others fall to the wayside.

This also seems to be the way that Social Security will get dismantled piece-by-piece: you're already happy with your retirement savings, you won't miss those puny checks when you're older afterall.

/jordan



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