lorddarley

Still Blaming the Market Victims

<<If we live in a global economy, and I think everyone would agree that we do, don’t some of the planet’s inhabitants need to be savers?>>

The reasons people save in China and other third world countries is not always "good."

1. They do not have the safety nets for health and old age pension which we have in the US and Europe. To provide the old age security many do not have, third worlders add to the problem by procreating beyond the planet's capacity.

2. Many third worlders do not have access to individual housing at reasonable prices. So, funds accumulate. Go to Singapore or some other Asian marvel. Everyone rents. Is that the world's prefered model?

I'm not endorsing over the top consumption, but the world will be a better place, in my view, if more people own homes, rather than saving money under a mattress. In addition to fiscal reform, countries like China (and Japan) must loosen the land use restrictions which make home ownership unattainable. We got ahead of the curve in the US, but we still have the world's best statistics for home ownership.

LordD