Capital gains, pension funds and the low saving ratio in the United States



The United States has always been regarded as a consumer-oriented society. Statistics compiled for the 1980s demonstrate that the United States has a very low savings ratio. Two major factors are identified as causing this, the federal and state tax treatment of loan interest and the high volume of consumer credit. There are dangers associated with this short-term perspective of instant consumerism, and institutions dealing in long-term financial management (pension/insurance companies) have particular problems in this respect.


JEL: E21


Savings, United States, Consumerism

Full Text:



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