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Frugal Americans Hurt Economic RecoveryThe paradox of thrift -- Americans are saving more in tough times but that's no good for the economy.APSunday, February 01, 2009 Americans are hunkering down and saving more. For a recession-battered economy, it couldn't be happening at a worse time.Economists call it the "paradox of thrift." What's good for individuals -- spending less, saving more -- is bad for the economy when everyone does it.On Friday, the government reported Americans' savings rate, as a percentage of after-tax incomes, rose to 2.9 percent in the last three months of 2008. That's up sharply from 1.2 percent in the third quarter and less than 1 percent a year ago.Like a teeter-totter, when the savings rate rises, spending falls. The latter accounts for about 70 percent of economic activity. When consumers refuse to spend, companies cut back, layoffs rise, people pinch pennies even more and the recession deepens.The downward spiral has hammered the retail and manufacturing industries. For years, stores enjoyed boom times as shoppers splurged on TVs, fancy kitchen decor and clothes. Suddenly, frugality is in style.
Well, there's certainly no point in investing it because you'll be penalized for being too rich.
We shouldn't need to save anyway, 'cause the gubmint is gonna take care of us in our old age...right? Right?*crickets chirping*
Right.......How many times have they got to tell you?
Well, I'm old. Where's my d*mned pony?
Look, you people can't be trusted with money. Uncle Zero will take all your money for safekeeping and give you vouchers to exchange for approved goods and services. Get with the program folks.
Didn't one of your nutty-but-greedy kings try something like this with the goldsmiths (who constituted the banking system, such as it was, at the time) back about 400 years ago? I don't believe that one had a particularly positive outcome.
Doesn't Obama think he's a king of sorts? Nothing new under the sun.
Don't blame me. I've been passing out money like I'm my own private congress. I've paid three people's rent and a couple of cell phone bills. My money is own the move.
Um, while you're at it.....
You gotta have my private number. Since I posted that I've relieved myself of another $132.33. I paid next weeks daycare bill and filled two tanks with gas.
I did my part of trying to jack up the economy today. I bought a 2008 Nissan 350Z sports car. Drove around all day in it.