A Silver Lining?
One of the possible upsides of this crisis is that we might once again have a reasonable national savings rate. As recently as three years ago we were, as a country, spending more than 100% of our income. The ensuing credit bubble, fed in no small part by ballooning home prices, was a big factor in EconoShitstorm '08. Check out the graph below for perspective on historical personal savings rates:
Sometimes an existential crisis is required for us to make fundamental changes as a society.
Via Planet Money.
2 comments:
Existential crisis: Kierkegaard and Heidegger all in one, eh? And this results in good.
I get it: no matter what happens by virtue of the virtuous design forced upon us and our fellows, it is good ~ because we are told it is good ~ personal options and responsibilities are off the table for discussion -- unless, of course, they promote the virtuous design that is being showered upon us, in which case the discussion shall agree with the design or will not heard at the table. Love it. Give us more seig heil, please. I am confident it must be good or it would not be forced upon so willing a public. ~Doctor it up
You're reading quite a bit into the chart here, Doc. It's an apolitical display of data.
Do you have a problem with the general proposition that we, as a society, might be transitioning from a nation of overspenders to one of savers?
If not, that would be a positive emanating from an otherwise negative situation, no?
Because that was my only point.
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