Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Normal
There are benefits to having private retirement funds that go far beyond just fixing the holes in SS funding. If people build their own nest egg, every average Joe becomes an investor. Savings rates go way up. And high savings rates means three things: First, it means high investment rates and high growth, which means more jobs. Second, banks run very high reserves, which allows lower interest rates and thus easier borrowing and, again, more investment. What's more, banks running high reserves allow the central bank to tighten credit conditions to match, which results in very low inflation, which is good for everybody. And finally, high savings rates mean lower aggregate demand, which causes consumer prices to drop.Absolutely agree.-Dr House
There are benefits to having private retirement funds that go far beyond just fixing the holes in SS funding. If people build their own nest egg, every average Joe becomes an investor. Savings rates go way up. And high savings rates means three things: First, it means high investment rates and high growth, which means more jobs. Second, banks run very high reserves, which allows lower interest rates and thus easier borrowing and, again, more investment. What's more, banks running high reserves allow the central bank to tighten credit conditions to match, which results in very low inflation, which is good for everybody. And finally, high savings rates mean lower aggregate demand, which causes consumer prices to drop.
Absolutely agree.
-Dr House
