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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Lane3 who wrote (101683)	2/22/2005 8:26:10 PM
From: kech	Read Replies (2) \| Respond to of 793731

But then what about the savings? We are at cross purposes and the mixed messages are a problem. We either want people to save or we don't. He said it two years ago. I don't recall him exhorting people to spend lately. The whole idea of the personal accounts in Social Security is designed to increase personal saving and to create a culture of the "ownership" society. It should do wonders for saving. The other problem reducing saving right now is that interest rates are extremely low. This reduces saving because the return on saving is low and it increases consumption because you can get interest free loans to buy cars and such. Finally as I said in an earlier post, the US is unusual in its degree of private home ownership. In addition the value of that housing stock has increased in value a lot and people see that wealth and consume more of their cash savings because they see that their real savings includes the wealth generated from the increase in their home value.

To: Lane3 who wrote (101683)	2/23/2005 1:24:27 PM
From: Neeka	Read Replies (1) \| Respond to of 793731

Who is "we?" We either want people to save or we don't. This is a personal choice. IMO Boomers should be saving all they can and under most circumstances usually have the wherewithall, discipline and resources to do so. With all the pronouncements about a future SS shortfall, what more incentive do we need? Let the younger generation spend like there is no tomorrow, and have their personal accounts.....pitiful as they may be. I remember what it was like after we bought the land and built the house we saved like crazy to own. Then having to furnish it and spend on the necessities when the children arrived. It was nearly impossible to save anything. It was only later after we'd accumulated what we needed, the children went out on their own, and all the hard work of building up reputation and career that we were able to start saving real money. I assume that is the way it is for most Americans. I never once thought that SS would support me in my old age. Haven't we been hearing that since we've been old enough to contribute? M