… as in “Let them eat cake” (M. Antoinette), followed by “off with their heads” (most everyone else).
I wonder who’s going to play Robespierre ?
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Translation: you save, so we can make more bad loans.
Should Americans save more? They should invest more. One of the problems is that macroeconomists make a meaningless technical distinction between investment and savings.
So let’s reframe the question. Should the Average Josephine save more when her government is hell-bent on inflating it’s way out of a debt crisis, mirrored by bailing out banks without punishing bankers or bettering regulation and governance?
The answer’s simple: are you kidding? Of course not.
Or at least not until bankers agree to have their bonuses taxed at a marginal 99.9% rate, and until both political and financial governance are made radically more open and transparent.
Until then, calls for savings from massively rich old dudes (especially to a generation who’s watching its future being eviscerated) are nothing short of a 21st century “let them eat cake”.
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