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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (62637)	4/24/2005 10:22:37 AM
From: Moominoid	Read Replies (1) \| Respond to of 74559

"You are talking about GDP accounting, and I'm talking about the (aggregate) personal income. The personal income and personal expenditures are use to calculate the savings rate." Personal income is one of the components in the GDP accounts no? One good reason that personal saving is low is that businesses do a lot of the saving (in the US economy they are doing all the net saving) which is then transmitted to consumers via capital gains. House price rises I've been trying to point out, make people feel wealthy but at a national level are only saving and investment to the extent that housing and infrastructure are being improved. Well this is what I've been teaching my intro econ students this semester :) I've been trying to explain this whole "not enough savings issue. Well there is a lot more I've been saying about it.