Americans Can't Stop Spending

Americans have grown increasingly credit dependent, saving far less than other Western nations. The result: a national crisis of debt and an uncertain fate for Americans planning for their futures. How much of this is caused by personal fiscal irresponsibility, as opposed to government initiatives that encourage reckless spending? Are there solutions to this epidemic, and if so, who should bear the burden of implementing them?

Why Americans Are Not Saving

SCROOGE APPROACH - Scrooge examines the causes of Americans’ declining habit of saving, dating the phenomenon back to the bank deregulation in the 1970s and 80s. This, coupled with failing savings and loans institutions in the 80s, led to lenient lending practices that encouraged spending over saving. The problem of excess spending worsened with the market’s long bull run and the housing bubble. As our economy weakens, Scrooge argues, members of Generations X and Y will be hit hardest by the consequences of America’s spending addiction. ...

Why We Need Sound Money

YEARNING TO BREATHE FREE - Libertarian Jason critiques traditional Keynsian economics, in which governments encourage citizens to spend for the good of the GDP, even if they don’t have much disposable income and ought to save their money. A FairTax, or consumption-based taxation system, would not, he argues, completely solve the problems of individuals who have easily obtained credit and make a practice of living in debt. He views the Fed's practice of inflationary fiat currency as the main cause of America's current credit problems. ...

Don’t Save Enough or Spend Enough

INEBRIATED PRESS - Inebriated Press satirizes the contradictory messages Americans receive about saving and spending. The government promises tax breaks to encourage spending and boost our flagging economy. Financial experts continually chastise us for not saving enough. The result, the author notes, is a financial Catch-22: either spend to ensure short-term economic prosperity, or save and risk a crash that could sink you within months. With this damned if you do, damned if you don’t outlook, no wonder Americans don’t know what to do with their money. ...

2.8.08

01:43 PM -

The Greatest Generation

stickywicket - What happened to the Greatest Generation's super savings mentality? It's just so funny to see one generation be such savers and the following generation become such spenders. They make far more money and they are STILL in debt! I mean, WHAT?! What for? The bigger plasma screen TV? The nicer car? Well, that will all change when the big borrowers soon start feeling the pain of their recklessness.

10:06 AM -

We've never seen a recession

dpy - Advertising and easy access to credit are indeed major reasons that American's outspend their means. However, I would argue that the majority of those Americans who are outspending their incomes are young people who have never seen a real recession. Quite simply, our economy has been so robust that people have not been scared into saving. That, unfortunately, looks as if its going to change.

03:41 AM -

Culture of the Consumer

Anonymous - Ads and marketing are designed to make us feel terrible unless we buy buy buy...... And the advent of the credit card, with its super easy access..... I'm not sure if you need opposable thumbs to get a credit card these days

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