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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (132275)	2/10/2001 9:18:34 AM
From: boris_a	Read Replies (1) \| Respond to of 1579791

Ted, The U.S. suffers from a shortage of savings US debt level (public+corporate+private) is out of balance for years now. The permanent Rep/Democ discussion focused on federal debts alone is misleading. These discussions are politically attractive to attack the opposite, but tend to hide the real problem, IMHO. We had a strong GDP growth fueled by a much stronger credit growth. Classic, but not sustainable. And a looming recession doesn't offer much help. Message 15330804 Message 15330688 Message 15029260 I'm very alerted now. Regards Boris.

To: tejek who wrote (132275)	2/10/2001 10:39:47 AM
From: hmaly	Respond to of 1579791

Ted, Re..<< The U.S. suffers from a shortage of savings--not a surfeit of surpluses. Let's not allow political shibboleths to distort sensible economic policy. Let's save some of the temporary surpluses for our future rather than squander them on tax cuts we don't need.<<<<<< A fine article, but it is limited in that stocks and other types of investments,housing, land,business, are not considered savings. One of the main reasons for our outflow of money from savings is that many people traded in their 5% passport savings books for the higher returns of the stock market. I also believe 401 k and IRA's are also not considered savings under certain circumstances. This author doesn't include under savings several of the biggest assets a family would have nowadays. You should also consider that it is far more dangerous to the economy to have personal debt growing to record highs as opposed gov. debt. Why? Because when the fed. debt grows because of tax relief, that puts more money into the economy, resulting in a higher GDP and in the end a higher tax base. If the consumers have too high of a debt burden, the economy will go into a recession which will also lower tax collections and raise outlays for unemployment etc. So, you are going to lose tax collection either way. The gov. is better off to lower tax collections now in the hope that once the economy gets going, you can once again collect more taxes.