How can we increase national savings??
Answer:
1)rewarding savings by a tax break For example for every % of your income you save you will get to deduct something from your taxes.2) Go to a flat tax rate. 3) Higher returns on savings.4) Teach people the difference between "I want" and "I need" Personal savings is a personal thing and in reality only the individual can make that decision.
Increase wages and raise interest rates. But the class-wariors that run the nation are vehemently opposed to the former and the latter is deflationary. With the massive amount of debt this nation faces, deflation will never be embraced as an option.
By increasing the interest rate. Cheer.
increase national savings?? try increasing US$10,000 in your bank account then you'll appreciate the difficulty
Who says that's a problem? The national savings rate is far higher than the official stats suggest, as the government has done a poor job of adjusting to the times and accurately reflecting current financial realities. In any case, the economics argument for savings is that they increase the pool of capital so as to encourage productivity gains through business investment. I see no evidence that there is any shortage of cheap capital.
Anyway, raising interest rates may possibly lead to higher savings rates, but at the expense of making us poorer through recession, higher unemployment, and higher costs for home and car loans. Not exactly what you want to accomplish.
The best way is to STOP taxing saving. Reward people for saving money instead of having politiains lick their lips at the idea of taxing them.
Raising interest rate is a bonehead idea.
The problem with the way the government calculates savings is that 401k's, for example, are not included as Savings in government statistics. So the national savings rate is much higher than is being reported.
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Git rid of Bush!
Change what we call SAVINGS!!!!!!! To save is to invest. You have the choice of where to invest: the band, stocks, the government, companies-bonds, your neighbor...your self.
Save more.
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