Comments on: The Best News Coming Out of the Recession http://www.automaticfinances.com/good-news-from-recession/ Money management for the 21st century Tue, 07 Feb 2012 06:31:05 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Louis http://www.automaticfinances.com/good-news-from-recession/comment-page-1/#comment-1028 Louis Fri, 05 Jun 2009 20:25:38 +0000 http://www.automaticfinances.com/?p=450#comment-1028 The personal savings rate averaged 10.4 percent from 1980-1984 and has been on a downward trend ever since (up until now as you point out). Interestingly, the general bull market in the US started in 1982. In addition to a declining savings rate, I believe technological advances and globalization, among other productivity gains, contributed to the general rise in the stock market. I wonder how much pain the economy will have to go through if the savings rate increases to a 10% level. How much of our apparent growth in the past 25-30 years is attributable to productivity gains vs. living beyond our means? The personal savings rate averaged 10.4 percent from 1980-1984 and has been on a downward trend ever since (up until now as you point out). Interestingly, the general bull market in the US started in 1982. In addition to a declining savings rate, I believe technological advances and globalization, among other productivity gains, contributed to the general rise in the stock market.

I wonder how much pain the economy will have to go through if the savings rate increases to a 10% level. How much of our apparent growth in the past 25-30 years is attributable to productivity gains vs. living beyond our means?

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