Professor’s Classroom

Daily Agitation

Subject:  Economics

I attempt to help the reader understand what is what in economics and in politics…I try to make it as simple as possible because others keep it difficult and confusing, that way they keep the American people ignorant of what is being done.

Since the current economic crisis began the American people has been saving rather than spending.  According to many pundits in 2006 the savings rate among Americans was a bout 0% and since the crisis that has risen to about 5+%.  They, whoever they are, say this is a good thing that Americans are scaling back the consuming and have restarted the savings that they had in the recent past.

Any savings in the past was done by those with higher incomes; the poor did very little savings if any.  But if you believe what the pundits are saying then that has changed.  Everyone in the media is proud of the American consumer for its change in ways.

Personally, I think that they are dead wrong.  Why?  The economic theory of the propensity to save is that savings will go up as incomes rise.  Look at today’s economic situation–is anyone’s pay rising?  Yes it is, but it is those that already make the higher wages.  The working poor are not saving, they are doing what they have always done…spend in the pursuit of a life.  So the only good news, if you want to call it that, is that Wall Street is recovering, Main Street still SUCKS!