Thursday, October 1, 2009
Spend or Save................again
Once again, we are being told we should spend money to help the economy. Will this really help the U.S. economy --long-term--or will saving lead to a recovery on firmer footing? Consumer spending is what drives the economy but saving somehow feels safer. And should we be spending what we don't really have? (Imagine if we all had huge budget deficits.)But where is the incentive to save when interest rates for savers are so low as to be practically zero?
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1 comment:
The problem is that people weren't saving to begin with and were overspending. If they had put money away and saved it, or just spent what they could and NOT what they wanted, we wouldn't have this problem. Also, we wouldn't have this problem if the government just left the economy alone.
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