America's low savings rate

[Lawrence]

> And what does Japan have to show for all this wonderful thrift? Although
it
> seems commonsensical that saving would drive economic growth in some
direct
> way (a la endogenous growth theory), it has not proven to be the case,
> especially in Japan. Nor, it would seem, in the US.

That's exactly what I'm getting at, which is why I asked in the first place.
Keynes said that investors won't invest in an economy in retreat. And yet,
Japan has had a 10 year slump and America has had a 10 year expansion. And
after all that, their savings rate is still higher than ours. Does this
disprove Keynes? The more I wonder about this issue, the more confused I
get.

--Lawrence Krubner