On Feb 6, 2007, at 9:47 AM, Jim Devine wrote:

the phrase "outbreak of prudence" is a bit off. at the lower levels of
income, low saving rates result from the pressure of needs and social
obligations on income more than from a lack of prudence.

Oh really? I didn't know that.

The decline in the savings rate has mostly happened above the median,
probably considerably above. Since they have about 80% of total
income, that's really not surprising. The top quartile has about 60%
of income. That's where the presence or absence of prudence is an issue.

Doug

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