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Politics : Welcome to Slider's Dugout
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To: jim_p who wrote (4635)3/1/2007 7:36:38 AM
From: sojournertruth   of 50468
 
As an aside -- the "savings rate" is calculated as "personal disposable income minus personal consumption expenditure".

If I take $1 of income and stuff it into my mattress it is considered "savings". If I take that same $1 of income and buy a treasury bond with it or put it in a 401K or a SEP-IRA it is NOT considered "saving". (The bond is "consumption" and the 401K is pre-tax).

The definition of "savings rate" is archaic and really doesn't apply to a 21st century worldwide economy.
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