I found this interesting, but I think whoever did the “study” missed a couple of things.
People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.
The savings rate has been negative for an entire year only four times in history – in 2005 and 2006 and in 1933 and 1932. However, the reasons for the decline in the savings rate were vastly different during the two periods.
Economists have put forward various reasons to explain the current lack of savings. These range from a feeling on the part of some people that they do not need to save because of the run-up in their investments such as homes and stock portfolios to an effort by many middle-class wage earners to maintain their current lifestyles even though their wage gains have been depressed by the effects of global competition.
As I read through this article, I found a couple of things lacking. The fact that we are the “instant gratification” generation comes to mind. “I see, I want it, I’ll worry about how to pay for it later!” There’s also the mindset that we don’t have to save because the “gubmint will take care of us”. The economic reasons for folks not saving are obvious. It’s the social reasons, I think, that are putting us into a quandary. There are a lot of tired, worn out, sayings that come to mind….”Can’t see the forest for the trees”, “The big picture”. type of the things. It seems this sort of thinking, or lack there of, has gotten this country into one heck of a mess….socially.
Just a thought!