>If the U.S. did not permit personal bankruptcy (note: Congress is now considering tightening those laws severely)do you think the savings rate would be higher?<
Kip,
You pose a good question. What you are saying is, if the people in the US knew they would be 100% responsible for their debts, would they spend less, hence save more?
My opinion is in the long run, personal responsibility would surely lead to more Americans saving for themselves, their families, and their future. But I don't believe this is why the Japanese have an EXTREME savings rate. I wish a person living in Japan could read our discussion and respond. Nothing like hearing it directly from the source. My guess all along was that the Japanese haven't always been prodigious savers (I could be mistaken). I felt it was a recent phenomenon due to their eight year recession. I know Americans stop spending when they feel like there is going to be trouble in our economy.
I don't think I've come across an article on why they have saved so much? Whatever the reason, I wish the US could learn some lessons from it. I would bet, ultimately though, it has something to do with personal responsibility. Something Americans sorely lack. But that's an entirely new subject and I don't want to get off topic.
MikeM(From Florida) |
