Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Lane3 who wrote (101686)	2/22/2005 8:59:33 PM
From: kech	Read Replies (1) \| Respond to of 793731

People need to save more than that. If people saved as much as responsible people should, the economy would tank. This way of looking at the issue shows a curious mixture of phenomenon that are usually treated quite separately. Whether the economy tanks or not is a short cycle issue and this is where macro economics comes in. I.e. what can we do to get the economy to get out of a slump and in turn how to keep it from overheating. The long term issues such as a low savings rate are usually thought of as more structural issues. Changes in incentives for saving or penalties on consumption (sales taxes or VAT taxes) are used to influence secular (non-cyclical) or structural issues. Hence the SS stuff is more in this category.

To: Lane3 who wrote (101686)	2/23/2005 3:32:26 AM
From: KLP	Respond to of 793731

If young people would save 8-10% of their salary each month, by the time they retire they would be millionaires....magic of compound interest. But, most don't. They would rather have a new car every year or two, and throw the depreciation money down the drain. Or the newest latest greatest cell phone, TV's, stereo systems, etc etc.... Expensive hobbies, expensive trips, and expensive clothes. The me generation. Then folks wonder why there isn't enough when they are getting ready to retire.

To: Lane3 who wrote (101686)	2/23/2005 1:32:35 PM
From: Neeka	Read Replies (1) \| Respond to of 793731

I think you were speaking figuratively, but if people did one small thing while they are still working and made sure they didn't have a mortgage to worry about in their retirement many problems would be solved (as long as property taxes don't drive them out) Investing in your home by paying off your mortgage is like money in the bank and usually offers much greater return. BTW: In your opinion, what is "responsible?" If people saved as much as responsible people should, the economy would tank.