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To: Dennis who wrote (1761)3/12/2001 5:22:59 AM
From: Arthur Tang  Read Replies (2) | Respond to of 3256
 
The government looks at average deposit per account as savings in cash. $100 was the average. 401k money is locked up, or gone in the government's view.

The common fallacy is to think that idle money is savings which is supposed to be good for the economy. But in reality the cash is taken away from the economy causing a mild recession such as what we have now. There are no new products to spend the money on, which is similar to the Russian economy.

Current wealth of this country is in good wages for productive work(higher standard of living and technology advancement). However, the introduction of new and better products are not keeping up with the wealth factor.

So, I expect the average accounts will have more idle money in them. The economy is thus lagging.