Comments on: This week’s financial blog reading http://www.joetaxpayer.com/this-weeks-financial-blog-reading/ Financial Commentary For The Average Joe Sat, 20 Mar 2010 01:39:37 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Augustine http://www.joetaxpayer.com/this-weeks-financial-blog-reading/comment-page-1/#comment-7111 Augustine Mon, 06 Jul 2009 16:46:16 +0000 http://www.joetaxpayer.com/?p=1560#comment-7111 Your list of examples just confirm my statement: the economy would shift from service (disposable income) to capital-intensive products (capital from savings, not from fractional banking). Your list of examples just confirm my statement: the economy would shift from service (disposable income) to capital-intensive products (capital from savings, not from fractional banking).

]]> By: JOE http://www.joetaxpayer.com/this-weeks-financial-blog-reading/comment-page-1/#comment-7106 JOE Mon, 06 Jul 2009 15:04:49 +0000 http://www.joetaxpayer.com/?p=1560#comment-7106 You're responding to my remark on saving 50%, right? I think if we did that starting 50 years ago, we'd be in great shape. I think that any change to the system, whether it's a new tax, new technology, change in the price of a commodity (oil?), or drastic change in spending habits creates a consequence to the economy. Consider the impact to the economy of a 50% saving rate. You cook 100% at home. No restaurant meals, no take out of any kind. That local restaurant, however reasonably priced, goes out of business, as do all fast food places. Movie theaters? Gone. Don't get me wrong, I suggest these very ways to cut back, at the same time warning than if every last person took my advice, same as the post I cited, we'd have issues. Thanks again for writing. If I ever figure out how to selectively auto-approve, you'll be on the list. Joe You’re responding to my remark on saving 50%, right? I think if we did that starting 50 years ago, we’d be in great shape. I think that any change to the system, whether it’s a new tax, new technology, change in the price of a commodity (oil?), or drastic change in spending habits creates a consequence to the economy. Consider the impact to the economy of a 50% saving rate. You cook 100% at home. No restaurant meals, no take out of any kind. That local restaurant, however reasonably priced, goes out of business, as do all fast food places. Movie theaters? Gone. Don’t get me wrong, I suggest these very ways to cut back, at the same time warning than if every last person took my advice, same as the post I cited, we’d have issues. Thanks again for writing. If I ever figure out how to selectively auto-approve, you’ll be on the list.
Joe

]]> By: Augustine http://www.joetaxpayer.com/this-weeks-financial-blog-reading/comment-page-1/#comment-7103 Augustine Mon, 06 Jul 2009 14:28:26 +0000 http://www.joetaxpayer.com/?p=1560#comment-7103 I disagree that saving sends the economy in a death spiral. On the contrary, spending just did it. If anything, the increased savings will shift the economy to more capital-intensive products away from gadgets and luxury. Let's face it, only the rich can afford boats and European vacations. If one has to go into debt or to quander one's savings to enjoy such pleasures, one cannot afford them. Bottom line, living within one's means not only only promotes a less stressful living, but also a healthier economy. I disagree that saving sends the economy in a death spiral. On the contrary, spending just did it.

If anything, the increased savings will shift the economy to more capital-intensive products away from gadgets and luxury.

Let’s face it, only the rich can afford boats and European vacations. If one has to go into debt or to quander one’s savings to enjoy such pleasures, one cannot afford them.

Bottom line, living within one’s means not only only promotes a less stressful living, but also a healthier economy.

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