Stitch, a lot is being said about the "high saving" rates in Japan relative to the US. Japan, 13% while the US has only 5% saving rate. I wonder if these figures compare apples to oranges. Here is my point, Being an independent fellow, I pay 15.3% in SS and Medicaid (or whatever that is), it covers, I believe the first 65 K or so and after that it is only about 2.5% (medicaid). These funds are "supposedly" savings, in my book. What is the rate that the Japanese are paying on the their earnings?
I am also led to understand that home ownership in Japan is not even half the rate it is in the US. I believe that the part of mortgage payments going toward the principal should be considered "savings as well". Finally, the statistics report an average saving of $163,000 (not clear to me if it is per capita or per household), I would venture to say that I could not retire on that sum of money and I doubt that a Japanese family could either. Many retirees in the US cash in their expensive housing and move into condos, adding the differential to their savings. Is the situation in Japan similar (namely, what is the size of real estate assets typically held by a Japanese family?). In summary, is the saving rate differential really that different? Maybe this is one of their problems, they should save less and spend more? (VBG)
Zeev |
