America's savings rate has collapsed over the past three decades. This trend, driven by endless money printing, helps explain why socialism is making a surprising return despite its many past failures around the world.
Over the last thirty years, the national savings rate has fallen sharply. This collapse stems from aggressive money printing by central banks. As a result, easy credit and low interest rates have distorted the economy. Many people now turn to government solutions, ignoring how such policies harm long-term growth.
Keynesians and other supporters of big government often overlook this data. They push for more spending and controls, yet the falling savings show a nation living beyond its means. History proves socialism leads to poor outcomes everywhere it has been tried. Still, these ideas gain traction in America today.
Wall Street and politicians benefit from this system in the short term. But it creates bubbles and inequality that fuel calls for socialist fixes. Without higher savings and sound money, the cycle continues. The graph reveals a truth that demands attention before more damage occurs.
Original Author: David Stockman | Source: Brownstone Institute
497.869 SRY