With Chinese Saving Rate at 50% and American at 0%, US Government Tried to ... Convince China to Spend More and Save Less!

In his blog, John Mugarian had an epiphany on why the Chinese have a saving rate of 50% whereas America has an essentially zero - ZERO! - saving rate:

I get very frustrated when I watch TV because of all the advertisements. I know, I should get Tivo or a DVR, but thus far I haven't.

A few weeks ago I decided to do something odd. I actually counted the minutes of ads while watching ABC's "Boston Legal". After I tallied the numbers I was shocked that 25 minutes of the hour long program were advertisements. This really frustrated me since I pay a fee to a cable company to watch my own TV, and then they waste 25 minutes of my time trying to sell me something during the show. Television is nothing more than a sales tool that has molded and shaped the minds and spending habits of consumers.

Then it hit me. Now I know why America has a zero savings rate, while the Chinese have a savings rate of 50%. Hence, my 4th quarter score above stands, Chinese 50%, the US 0%.

So, what is the American government doing about our dismal national saving rate? Well, for one, they went to China and tell them to save less! Mungarian wrote:

In Barron's (December 11, 2006, page 30), Al Hubbard, the assistant secretary to the president for economic policy told China's deputy finance minister, ““the Chinese need to move to a lower savings rate. It would both raise the standard of living and increase the quality of imports into China."

I would have loved to see the face of China's deputy finance minister after Hubbard made those comments. This is like taking financial advice from a person who (Lending Tree commercial) is "up to their eyeballs in debt".

Link - via Memetician (photo: s2photo [Flickr], edited)

Newest 5
Newest 5 Comments

Here was a time when people in the U.S. were able to pursue happiness, which includes wealth. it's not yours, it is theirs--they earned it. but as quizerry stated, it is unfair? to levy only wealthy because it punishes success, which is exactly what the NWO wants so they get to set up an "agency" to oversee this task and all the while making money off it.
Abusive comment hidden. (Show it anyway.)
Here was a time when people in the U.S. were able to pursue happiness, which includes wealth. it's not yours, it is theirs--they earned it. but as quizerry stated, it is unfair? to levy only wealthy because it punishes success, which is exactly what the NWO wants so they get to set up an "agency" to oversee this task and all the while making money off it.
Abusive comment hidden. (Show it anyway.)
Our "savings" rate is so low, because savings accounts are just about the stupidest place to put your money. Which is what this statistic is measuring: how many people have money in savings accounts. You're essentially getting 1-2% return above inflation (at best) to let a bank go and invest your money and pocket the difference. I have zero savings, but lots of money invested in my 401k, mutual funds, and money market accounts. I feel like I've got a pretty good handle on the future, but according to you I'm doing terrible.
Abusive comment hidden. (Show it anyway.)
Jerse:

"According to the BEA, the national annual savings rate fell in 2005 to its lowest point since the Great Depression: negative 0.4 percent. Since then, it has continued to fall, registering at negative 1.6 percent in May 2006 and negative 1.5 percent in June. Compare those numbers with 1985 when the national savings rate hit a record 11.1 percent and it's clear why economists are raising the warning flag." from BankRate

Google "American savings rate" and you'll see many other sources stating it's below 0%.
Abusive comment hidden. (Show it anyway.)
#12 - this is exactly what we did. I haven't seen any commercial tv in two years and don't miss it a bit. When I'm somewhere there's a tv, it's almost assaultive.

While saving that $80/month (for basic cable!), we get the added bonus that our 27 month old speaks in complete & detailed sentences, has well developed social skills, is amazingly polite, doesn't know what a commercial is, doesn't know what a "product tie-in" is, and never begs for crap he saw on tv. We are ecstatic that his first choice for fun is to play outside or read a book or play with his blocks.
Abusive comment hidden. (Show it anyway.)
Commenting is closed.





Check out Twaggies' very funny clip:

Tech Fails - Twaggies by Twaggies
Email This Post to a Friend
"With Chinese Saving Rate at 50% and American at 0%, US Government Tried to ... Convince China to Spend More and Save Less!"

Separate multiple emails with a comma. Limit 5.

 

Success! Your email has been sent!

close window