LJWorld.com weblogs Loyal Opposition
America’s Stifled Growth
In today’s Washington Post an article appears (http://www.washingtonpost.com/opinions/robert-j-samuelson-why-arent-americans-spending-their-record-wealth/2013/06/16/5d677b7e-d50a-11e2-8cbe-1bcbee06f8f8_story.html?wpisrc=nl_headlines) that explores why our recovery has been slower than historic experience. The gist of the article IMHO is that people (even through many have recovered the wealth they lost during the downturn) are simply not spending.
The author speculates a bit on why. Are you in that boat? If you are holding back why are you doing so?
I can only speak for my family. We are retired receiving social security, pensions and return on savings. Today, our social security, Medicare, and pensions are all under attack with the potential for significant loss of future buying power. The earnings on our savings have been artificially and significantly reduced. Equities, the one area of investment that is showing real growth, are very risky for those in our age group. Despite careful planning during our working years we now find ourselves holding back on our expenditures because we are fearful of not having enough resources to pay our future bills. Our hesitance is being driven by government activities.