Posts Tagged 'medical'

With slumping economy, Americans may be saving more

For a while, the national savings rate – how much people save instead of spend – was negative. But that trend may be reversing, says the Washington Post, because of the soured economy.

When people are facing job loss, higher credit bills, and less disposable income, they will seek ways to keep and save their money. Beware the unintended consequences, says the Post:

Ironically, even if consumers are saving more, they could be helping to make the recession worse. The more people save, the less they spend, driving down demand for goods and services, which in turn dampens economic growth. The economist John Maynard Keynes dubbed this “the paradox of thrift.”

Unfortunately for the economy, more Americans are cutting back on frivilous expenses, like hair stylists and dining out, because many fear unemployment and rising medical costs.

What about you? Are you saving more these days, or looking for ways to cut expenses? Let us know in the comments.


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