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To: Revolting cat!
the cat's confused: are we supposed to save or spend to support the economy?

Neither. This is Reuters you're reading. If interest rates are low, savings will be low, so Reuters writes articles about the low savings rate, and says it's bad.

The "vicious circle" they refer to, also known as "the market," will eventually cause interest rates to rise if there is insufficient savings to meet demand. But Reuters will not write articles about how the saings rate is going up. They will write articles saying that high interest rates choke the economy.

Reverse all this stuff if there is a Democrat in the White House, of course. Then all this same stuff is good. When Democrats are in, high spending rates do not mean low savings and talk of doom. Instead those are "boom times." If interest rates rise under a Democrat, it means that savings and investment have never been better.

I hope this helps clear things up.

49 posted on 12/20/2003 7:29:15 PM PST by Nick Danger (With sufficient thrust, pigs fly just fine.)
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To: Nick Danger
All right, I'm in partial agreement. Regarding the media coverage. Nevertheless, the stats I have seen over the years indicate that our savings rate, good times or bad, is low, compared with other nations. Still, I must say that the people I know, work with, generally save quite a bit (as far as I can judge from casual exchanges.) But the stats don't lie, do they?
50 posted on 12/20/2003 7:36:32 PM PST by Revolting cat! (Merry Shopping Season and a Happy Pre-Christmas Storewide Sales Event!)
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