In his July 27 column, “Waging war on culture of debt”, Gil Smart states “Our national savings rate is zero; and while it’s rarely discussed, this is one reason our economy has been so resilient. The moment Americans stop spending money they don’t have is the moment the economy careens into the ditch.”
WATCHDOG: Not necessarily so. When consumers deposit savings in banks or invest in stocks and bonds, their savings may help fund capital investment. Dollars used to build plants and expand businesses do at least as much to stimulate the economy as does consumer consumption. For example, we could invest in alternate forms of energy and thus lessen our dependence on oil.
