Ian McDonald wrote an “chilling” article titled, “Benefits of Saving Wasted on Youth” published in today’s WSJ. In it, Ian talks about the US savings rate. It’s pretty common knowledge that the savings rate is super low in the US. This year the savings rate is negative 1%.
That’s bad news, but what’s worse is the generational relationship to savings. Ian discusses how those under the age of 42 have a NEGATIVE 18% savings rate. That’s shocking, but not surprising.
My Opinion (although I think it’s self-evident) is that the consumer culture is completely out of hand and younger people are willing to go to great lengths to acquire the social indicators of success. Luxury cars, plasma TV’s, bigger and bigger houses. To hell with the future, it’s about showing everyone today that I’ve made it!