"But returns are only one aspect of savings. Other aspects have to do with
accumulating wealth"Returns have EVERYTHING to do with accumulating
wealth. If you are getting returns that are MUCH lower than the rate of
inflation then you are not accumulating wealth at all, you are losing it. You
may be accumulating actual dollars in the bank, but you are not accumulating
wealth.Such a statement was clearly made by someone who doesn't
understand the time value of money.
Glad to know I'm in the minority.
The root cause of our National Debt is the poor money management of our society.
We expect military protection, welfare programs, Social Security, health care,
highways and many other Federal, State and local programs. Yet, we cannot make
the connection between these vast government expenditures and their cost to each
of us. The 2013 Federal budget is $3.8 trillion. That is $11,692
for every American (child, woman, man). For my family of 6 that would be
$70,152 for this year.The military portion of the Federal budget is
$683 billion (or $2,101 for every American and $12,606 for my family).We talk constantly about the National debt, but we cannot agree on how to cut
it. So it keeps going up. JUST LIKE OUR PERSONAL DEBT!The lack of
logical money understanding and common sense budgeting by most Americans is
reflected in their personl financial situation and in our National
I think that it is the other way around. American spending reflects the
Government spending.If you look at history, when the nation was
paying down debt and was spending close to what it took in from taxes, people
were more responsible with their own money. However, over the past 20 years or
so the government has become more careless with their spending, now we are
seeing that the people are too.The people are following the example
set by the politicians in Washington.
I doubt the writer of this article ever went to college. Correlation does not
mean causation.Our debt is the direct result of FAILED repub policy.
Completely and utterly FAILED leadership.How many trillions have
been wasted in wars in the ME? How much of our debt can we attributed to the
Bush tax cuts? Why must we spend 4x as much as China and 8x as much as Russia in
defense? How many billions did we throw away in bank bailouts? How much money is
wasted in a completely failed health care system? We would be doing
just fine had Bush never invaded the ME. Had we kept defense spending to
Clinton's levels, we wouldn't be experiencing the bloat we have today.
The bush tax cuts? Who wanted those anyway? Certainly not the majority of
Americans. Yet, the small minority, the richies, who financed Bush's
campaign wanted them. They have proven to be ineffective and have only added to
our national debt. Bush's bank bailouts? Momma always told me to own up to
my choices, those banks were bailed out by taxpayers. Our health care system is
a mess. We need a single payer system!
To some extent most people save about the same as the federal government - that
is true. I think alot of this has to do with the availability of credit cards
and there is just alot more stuff to buy than say...35 years ago. Today you have
an electronic explosion of gadgets that didn't exist 35 years ago not to
mention the insane price of just every day appliances such as washing machines
etc... Things were alot simpler back then and the only time I ever saw my
parents buy on credit was for a car or home and back then a new car cost $3000 -
$8000 which was about 15% of a persons yearly income and a home was 50-80k.
Today most new cars run you 25-35k which is about 35-45% of a persons yearly
income and thus a persons debt grows substantially. It is just HARDER to save
today and that is why more and more women have to work just to make ends meet
compared to the good ole days. I do think people really WANT to save more ...if
they could they would.
To "The Real Maverick" really, that is what you think, but reality has
something different to say.If you look at who controls congress and
which party allowed the most debt to be added to the national debt, it is
Democrats that have added the most. In fact, when Democrats controlled congress
between 2007 and 2011, the debt increased by $6.9 Trillion. In comparison
between 2003 and 2007 when Republicans (under the evil GWB) added only $2.19
trillion.But, if you really want to go back into history, we
haven't had a balanced budget for about 50 years, under both political
parties. So, all you are arguing is that under one parent they over spent the
income by $100, but under the other they over spent by $300. Either way,
neither one has policies that will eliminate the debt or even stop the rate of
adding to the debt.The closest that we have had was the 1990's
when the Republicans got the deficit down to $23 billion.You may not
like Republicans, but they have the same policies about deficit spending that
the Democrats have, and neither one is good.