If you look into the inflation statistics, the service sector is the dominant factor in inflation. If the service sector makes up 70% of the economy, it makes sense that it makes up the larger portion of inflation statistics. Doesn't prove that service is bad and manufacturing is good. Try again?
Like your service sector I presume, to assure even greater inflation in dollars chasing dollars as opposed to production.
Services are inflationary? Manufacturing is deflationary? You're making less and less sense.
From what? That savings number is what is the percentage of after tax dollars not utilized in consumption.
Capital gains taxes are subtracted, capital gains are not added. The savings statistic as currently calculated leaves a lot to be desired.
Net worth today has nothing to do with the issue,
That's right. We're poor and $54 trillion in net worth won't convince you otherwise.
See you in the winter grasshopper.
Buy gold!!
Buy gold!!
Why would I do that? Gold doesn't pay interest or dividend, nor can it be said to be worth anything as an appreciable asset.
Better to create or invest in a business than buy gold anyday.
Unfortunately, people are using less and less of their income dollars to do the latter for the strong disincentives of high marginal tax rates on savings and investing as well as inflationary expectations.
As the savings rate with respect to discretionary income more than apply demonstrates. In fact they have begun to actually head into negative territory as a savings rate. The are becoming net debtors instead of net investor/savers of income.
