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re: Here's an economics multiple choice question for you all
Posted on 5/15/14 at 5:16 pm to Broke
Posted on 5/15/14 at 5:16 pm to Broke
quote:
The US savings rate is just embarrassing.
its not as bad as they say.
a) businesses save quite well, and corporate coffers are flush, that is essentially savings that may not be accurately represented in the high level metrics.
b) Lower class people save so little, it brings down the overall average.
c) traditional savings vehicle (the CD, money market) have had piss poor rates for 20+ years. This disincentives savings. This is the express purpose of lose monetary policies to make it more attractive to spend.
Its not good, but I don't think it will cause as many problems as our surging deficit.
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