An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Pages
▼
Pages
▼
Tuesday, July 23, 2013
Personal savings collapse. Thanks President Obama!
If private sector personal savings (private sector surpluses) are the "flip side" the government's "dis-saving" (gov't deficit), then it's pretty clear that the reduction in the government's deficit caused the private sector's surplus to fall.
So looks like the end of the payroll tax holiday may have just prevented people from saving this year as former savings are now taxed away...
ReplyDeleteSavings are a "demand leakage" anyway.... so we still end up with positive (barely) GDP growth...
rsp,
If private sector personal savings (private sector surpluses) are the "flip side" the government's "dis-saving" (gov't deficit), then it's pretty clear that the reduction in the government's deficit caused the private sector's surplus to fall.
ReplyDeleteI love this piece on President Obama by the late Alexander Cockburn: http://www.counterpunch.org/2011/08/05/ready-to-vote-for-mitt-romney/
ReplyDelete