More Obama Economy News: Half of Americans Have No Savings

From CNBC: “Nearly half of Americans have no savings: Survey.”

Short on savings? You’re not alone.

Twenty-eight percent of Americans have nothing in their savings accounts and another 21 percent don’t even have a savings account, according to a new survey from GOBankingRates.

The rate comparison website surveyed 5,000 people and found just 29 percent of them had $1,000 or more in savings account.

The article produces another group that has a slightly more optimistic outlook, but even if true, does not improve the outlook on the economy.

On average, Americans saved 4.6 percent of their disposable income in August, according to the U.S. Commerce Department’s Bureau of Economic Analysis. That rate includes savings in retirement accounts, such as IRAs and 401(k) plans.

Most financial advisors recommend that people have three to six months of essential expenses in an emergency fund to pay for unexpected costs. Sadly, it looks like most savers aren’t following that advice whether they want to or not.

This kind of story demonstrates the insanity of our economic journalism. What is necessary for people to save more? An ethic of saving would help. But we also need lower prices to allow us to have enough leftover money to put in savings. Furthermore, an interest rate that rapidly grows the money we save is also an inducement to save money.

But our political/banking cartel has convinced the media that the key to helping the economy is keeping the interest rate low. They even promote the idea of a “negative interest rate” that would take the money people saved in banks—thus encouraging them to spend more money as soon as they receive it rather than save any. Along with this, the media tends to claim that falling prices are a problem, and even pretend that we are better off if energy becomes more expensive.

All of that pressures people to not put aside savings. Instead they tend to spend it all and even go into debt as well (because the low interest rates not only discourage saving but encourage borrowing). Yet then the media turns around and warns us that people aren’t saving money.