Sunday, March 15, 2009

A Savings Glut

That Accursed Propensity To Save, an article by Antal E. Fekete is a good reading add on to my previous post, "The Enemy: government, free markets and capitalism." In the article Fekete speaks to a March 2, 2009, column in The New York Times under the banner title "Revenge of the Glut" by Paul Krugman.

As Antal Feketed says "Saving always and everywhere had to precede consumption. Saving has always been primary and consumption secondary, like it or not."
I remember my dad, in the days before credit, putting aside money from his pay each week in seperate envelopes labeled with the goal of his saving: a refrigerator, rent, a car repair, new knobs for the kitchen cabinet ....

We need to get back to basics.