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Do you agree that it is people saving too much that is keeping our economy from recovering?

I heard on the news last night that savings is up so much it is keeping our economy from recovering. They said an average of 8% is being saved which is a HUGE amount. Do you think this is a contributing factor?

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Asked by JasonsMom2007 at 11:03 PM on Mar. 3, 2009 in Politics & Current Events

Level 8 (242 Credits)
Answers (19)
  • it may be a little but i wouldn't say it's a huge factor...havn't people always been saving money?

    Answer by JuLiAnSmOmMy317 at 11:05 PM on Mar. 3, 2009

  • If it is then our economy needs to learn to operate w/o that....seriously from a personal finance standpoint you NEED to be saving at least 10% of your income (more if you're not including retirement savings in there)

    NO wonder American's are in so much debt!!

    But no, I think the pork packages are scarring the crap out of the guys with the real money so they're pullin out.

    Answer by Praying at 11:08 PM on Mar. 3, 2009

  • I think it is making a difference. I think the gov't has scared the hell out of everybody and now everyone is saving like it's the depression. I honestly have thought about throwing a couple thousand under my mattress; It scares me that banks are asking for bailouts.

    Answer by Anonymous at 11:09 PM on Mar. 3, 2009

  • No..its LOSS of jobs and homes
    Most homes default due to LARGE medical bills!
    My hubby will be laid off on Friday and I was laid off Jan 30th...good times

    Answer by sweet-a-kins at 11:19 PM on Mar. 3, 2009

  • I think it is a factor. I do not believe it is the main factor. But I am not going to stop holding onto the little money we have available to us just to get the economy going. I don't need to newest, best, brightest, biggest. I have my basic needs met and the basic needs of my children are met. I am not going out to buy wants. And our basic needs aren't much. LOL I just got my kids "new" clothes. A huge bag of REALLY nice shirts and pants from freecycle for my boys and another bag for my daughter! Didn't spend a dime (well, maybe about $2.00 in gas to go pick them up).
    I hope the government isn't looking to me to stimulate the economy because we'd never get out of this recession. LOL The most I buy is groceries. $300 a month for food, diapers, cleaning supplies, TP, etc. (yea, that stimulus check went into savings last year, LOL, too bad my hubby needed new tires or it would still be in savings! LOL)

    Answer by momof3inTN at 11:21 PM on Mar. 3, 2009

  • Obama with his socialistic agenda is keeping people from spending. They don't know what is going to happen next. People are not going to invest their money in the stock market when it is plummeting and the govt is wanting to spend $3.7 trillion. So many have lost their life savings and no one knows if they will keep their jobs.

    Answer by Scorpio359 at 1:30 AM on Mar. 4, 2009

  • We have always saved other who spent like rich folk made up for what we saved until recently. The economy will not recover until people do start spending.

    Answer by Anonymous at 2:50 AM on Mar. 4, 2009

  • Who the hell would invest in the stock market today?? Some mornings I just think about pulling out EVERYTHING from the various places we have it, and start burying it in the backyard - granted, it will not earn it's awesome 3% interest.. but at least I know it will be there in the coffee cans when I want it... Just how serious are they when they say we are insured to 150,000 - when all the banks fail, and the goverment runs out of ink to print money, which is becoming more worthless the more they print - who is going to bail US out????

    Answer by misskimmy62 at 3:51 AM on Mar. 4, 2009

  • No savings is not the problem. Lack of saving and excess debt is the problem!
    Ladies your savings does not just sit in a bank and collect interest. The reason your money earns interest is because it is lent out. It is lent out to people that can afford to return more than they borrowed- at least that is the hope.

    Money is often times lent out to someone with an idea. They have an idea for a new technology that will 'revolutionize' the way a certain product(s?) is made. The product is then made for a cheaper price, consumers buy it at a cheaper price, and the person that loaned (saved!!) the money gets a nice return on it.

    Answer by Erica_Smerica at 4:27 AM on Mar. 4, 2009

  • How can there be so much savings when the majority of people live pay to pay to survive? A lot of people I come in contact with are barely able to make ends meet and not have enough each month to put away. I know that before my hours at work were cut, I was able to put a few bucks away, but now with cut hours and pay, it's really rough to scrounge up $10.00 at times. My pay went down, but my expenses did not... as a matter of fact, with co-pays and an 80/20 insurance plan and a sick DH, my expenses continue to climb!

    Answer by TeensMom07 at 6:58 AM on Mar. 4, 2009

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