Should the people save?
Less than 30 years ago, the top prize for the Big Sweep ticket was $400k compares to today's $2 million. Hitting the top prize then was to become a rich man. The money could easily buy 10 semi Ds. But if this guy were to put the money in the bank to earn interest, to save, he is relatively a poor guy today. Even if the amount is doubled or tripled, he could not afford a decent semi D. For less than $20k, one could drive off a brand new Mercedes 200. Today, not even enough to pay for a cheap weekend car. Is saving a good thing? The Americans may be doing one of the smartest thing. Spend the future money now and pay the debt in the future with depreciated currency. In that way they get the full value of the money today. The qualification is that they must be able to pay later. Why the obsession to make the people save when the end result is that the saver gets less than what he gets at the end, the value drops significantly? Who benefits from such a scheme? Not that saving is bad. But it is bad and a poor way to manage your money if inflation and the cost of living is not controlled. This is the dreadful thing. For every 2 or 3 % interest gain, inflation may double or triple and the money, though growing in size, is actually losing its value. Saving is a big farce if other factors are not managed properly to protect the value of money. It is quite wicked actually.