Archive for December, 2008

Economy and Savings, Is Consumer Spending Necessary?

Friday, December 12th, 2008
What’s happening with the Economy is a necessary part of the cycle.
With Americans saving less of their income over the past 15 years and each year the federal budget deficit growing larger the proverbial “bm” has hit the fan.  And finally, I say.  I know that consumer spending is good for the economy but does the economy have to rely THAT much on our spending?  When is it ever been healthy to spend all you make.  70% of Americans live paycheck to paycheck, spending everything they make.  That has to stop! 
 
Up until the late 1980s the savings rate hovered around 10% but since that time it’s dropped like a load of bricks.  In 2005 the savings rate went negative!  Do you know that the consumer credit card started being used (or sh