Are You Poor? It Doesn't Pay to Save.

Does saving really work for poor people? This study [pdf] from the National Center for Policy Analysis, a conservative thinktank, said no:

Low-income households face "astronomical" penalties for saving, according to the report by the National Center for Policy Analysis. For example, each $1 saved by a single mother earning $15,000 a year would cost her $2.60 in higher taxes and lost government benefits.

"We're constantly told that we need to save early and often to prepare for retirement," said Laurence Kotlikoff, professor at Boston University and author of the study. "Yet government policies tell low-income families, 'If you save for the future, you won't get our help today.' "


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ok let me tell you, I am that single mother they are talking about. I have 2 teen boys, and i get no child support because there dad is a loser. But anyway, I make about 20,000 a year and I would love to save money but It is just Impossible! i get paid once a month and stuggle to just to make it till the end. How the heck can i save anything. I worked 3 jobs before and the stress just got to me so bad. The SO CALL HELP these people are talking about is crap. I get NOTHING. Beacause according to the welfare people i make to much money for a family of 3. Try feeding 3 people on 240 a month food allowance. it sucks. but i do it some how.
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Nice, Becki. I guess you're the explanation for why the U.S. has record levels of personal, corporate and government debt.

Hope you learn to speak Mandarin - they're going to own us soon the way we're going.
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David: and your point is?
Or is it just assumed in your post that conservatives and industry are just evil and spread false information for their own profit? Go take a long walk off a short pier, comrade...

So-called "saving" is a bad idea in most cases as it is better for people or businesses on any income level to plow a healthy percentage of profits back into investment, research and development. Any corporation or wealthy individual who has been around long enough and succeeded has done this as a matter of course.
The article and this discussion leaves aside the whole point about taxes and government intervention (read: profiteering) in financial transactions between entities.
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NCPA is most definitely a conservative think tank, and it's also an industry front group, well established and fairly well know in Washington.

Its funders -- P&G, ExxonMobil, Scaife, Lilly -- are its message. Its board and staff are not only a who's who of the GOP, but of other conservative think tanks and front groups as well -- Hudson, Hoover, Heartland, etc.

A couple of minutes of googling comes up with enough evidence to convince anyone who could be convinced with evidence.
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