Americans need to increase their savings rate from today’s 5% (a vast improvement from the 0% rate of two years ago) to the 10% long-term average
Americans may need to increase savings, but since most/few Americans even understand the concept of saving, that is just unlikely to happen.
This new breed/generation knows consumption. Someone needs to teach them how to save. “Saving” is something foreign and unknown and rejected by many Americans.[/quote]
We have always had a range of savers. There were spendthrifts who never saved anything back when we were saving 10%. There were just other people who saved 20% and it averaged out. No one can save the willfully stupid, not even the government. Those who are smart will learn their lessons from reality and help set us up for long term prosperity. Those who dont wanna be smart wont, and will relive this over and over again.
