So go take a look at this chart, present by the ever-prescient CR blog. Notice how as soon as the US government via Reagan said “hey, it’s okay to spend WAY more money that you have now or will ever have” the US personal savings rate has sunk to new lows, at one point going negative just after the housing bubble start to burst. It had an all-time high of 12.5% just before the Carter administration, though it did peak back above 12% right after Reagan took office, because of a recession. The Savings rate decline is almost an inverse mirror of the stock market bubble. Kinda makes you wonder where all those profits came from.
If it’s good enough for gub’mint, it’s good enough for me
