Democracy & Technology Blog Junk Finance
Don’t get cocky. This week’s news that your cellphone won’t give you brain cancer isn’t cause for relief or rejoice. You see, it’s really 1933 all over again:
“Americans’ personal savings rate dipped into negative territory in something that hasn’t happened since the Great Depression. Consumers depleted their savings to finance the purchases of cars and other big-ticket items.”
Although the definition of “deplete” is “to use up” or “to empty out,” it’s hard to see how consumers have “depleted” their savings when U.S. households have a record $51 trillion in net worth and a near record $27 trillion in financial net worth (excluding homes).
By all means, let’s employ policies that encourage more savings and investment, but let’s not scare with the financial equivalent of junk science.
-Bret Swanson