Read it back in the day. Their money was basically worthless, because they couldn't buy anything with it. Anything decent was sold in hard currency that they couldn't get. Soviets kept plenty of cash on hand on the off hand luck that there was something worthwile available to buy.
As far as what would the economy look like if everyone saved enough for retirement? How about a federal budget of half what it is now and ALL citizens having larger paychecks both because of lower taxes and because of greater business activity.
Since it's dumb to save while you still have credit card bills, lets assume that everyone has first paid off the plastic and tears it up. What "greater business activity" would there be with everybody's money in the bank gathering dust, rather than coursing around the economy transporting economic energy?
I'm not saying it's a bad idea for *you* to save and invest. I'm just saying that if everybody did it, then it would cease to be a good thing because of the reduction in spending.
Economic life isn't built on people buying their necessities. That accounts for remakably little in the economy today. Our economy is built on trading things people want, not need.
No. Their money was worthless because it wasn't accepted anywhere else on the planet. Monopoly money had greater value than the Ruble.
Since it's dumb to save while you still have credit card bills,
Your assumption is false.
lets assume that everyone has first paid off the plastic and tears it up. What "greater business activity" would there be with everybody's money in the bank gathering dust, rather than coursing around the economy transporting economic energy?
You are assuming a 100% savings rate beyond basic necessities. That is impossible and no one has or would suggest such a thing.
You have also forgetton the part that if everyone was responsible in saving for retirement so they would be confortable there wouldnt be a need for SS, Medicare, and a whole host of other government programs and the budget could be slashed in half or more. Peoples take home pay would explode and their economic activity in the market (consumer, not capital) would also rise while their savings and investing would rise as well.
The biggest obstacle to saving and investing today is that for most people greater than 50% of their income is paid in taxes.