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CNN Money:

Why can’t we split the money among taxpayers?  “... there’s a good chance I’m going to save it.”  False assumption.  Americans have never increased their savings this substantially ($10,000 apiece) under any administration at any time in the history of the US.  The money will be spent, either on goods or debt.  Give us the cash, let it trickle up.  It’s our money, after all. 

02/03/09 • 03:52 PM • EconomicsPolitics • (3) Comments

Comments:

Actually, over the past year the savings rate has increased dramatically.  The is somewhat worsening for the recession, because consumer demand is reduced by an equal amount.

The explanation, unsurprisingly, is that “Consumers aren’t saving; they are building bomb shelters.”  You can watch the layoffs all around you without thinking you might need to prepare for the worst.

Posted by Eric in Santa Fe on 02/04/09 at 09:47 AM

I believe no Administration has ever been able to increase the National Savings Rate by more than 2% in any single four year period.

Posted by Garret P Vreeland on 02/04/09 at 10:16 AM

Then give it to the taxpayers in the form of a required government savings account. If you borrow against it you forfeit 40%+ like you do when you pull money from your 401K or IRA before it matures.

Or, give it to taxpayers in the form of credit card debt pay-down. Then, the money *does* go to the banks, and it helps the taxpayer by reducing or eliminating their debt level.

But don’t just give it to the banks and tell them they can do whatever they want with it. Our best interests are not their best interests.

Posted by Cameron Barrett on 02/06/09 at 02:43 PM

 

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