Tuesday, May 24, 2005

Capitalists do not save

Is It a Savings Crisis or a Math Error? - New York Times
Virtually all economists argue that Americans could stand to consume less and save more. But some say that a flaw may exist not in our national character but in the way the government calculates savings: because the bureau's method of tallying income and consumption doesn't take into account structural changes in the finances of Americans, it may systematically understate income and overstate consumption.