tag:blogger.com,1999:blog-6048425.post5942097378373519460..comments2023-11-02T15:32:15.417+00:00Comments on Bluematter.: Saving rate statistics are misleading, or why China is not really saving more than the USUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6048425.post-3811967741058372392010-02-04T16:30:02.383+00:002010-02-04T16:30:02.383+00:00Not sure if I can derive the conclusion from your ...Not sure if I can derive the conclusion from your post. I disagree with the 2nd part of the title and I am not sure if the 1st part of the title is related. In essence, Americans save less than Chinese:<br /><br />---<br /><br />Currently:<br />1) Chinese do spent money on their education, incrementing their future earning power, provided that they can afford it. Most of their savings (on average 40%) go first towards making up for the lack of nationwide healthcare and pension system, then towards education.<br /><br />2) Most Americans require credit to buy their education. They have very few savings as most of their income is spent on consumption and paying of interest on loans, etc.<br /><br />---<br /><br />Ideally:<br />1) China should work towards a nation-wide health care and pension system, such that Chinese can spend a larger portion of their savings for education and consumption.<br /><br />2) America should increase their savings rate and reduce excessive borrowing as this was the fundamental reason for the global crisis.Thomasnoreply@blogger.com