The Washington Post ran a story regarding the personal savings rate of the United States; it was negative 1 percent for the year of 2006, the worst since the negative 1.5 percent in 1933 during the Great Depression. One of the proposed reasons behind people spending all of their income and either dipping into their savings or borrowing more is that many of the middle-income workers are continuing their spending patterns despite the fact that they are earning less actual wages than before. This is a great contrast to the necessity reasons people spent their savings in addition to their wages during the Great Depression.
We should all be concerned given the fact that the baby boomers are beginning to retire and will be drawing social security payments. But it's ok because my generation always knew that we wouldn't have social security, and there's always credit cards right? JUST KIDDING
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I wonder if those of us who are living responsibly and saving will be screwed if everyone else does not save?
Just a thought from one boomer to a gen x'er. Most of us grew up with the foundation that if you worked hard for a company you would have a pension. Even if you had one at one time,the execs are screwing them away quickly. Every raise we get is quickly eaten by the cost of health insurance,which at our age we can't go without. I will give you the fact that most of us are living way out of what we could be comfortable with. But its hard to compare the mostly rural lifestyle of the 30's to the mostly urban lifestyle of today. Not like we can have a cow in town.And lets not forget that the female boomers are the ones who opened up the workforce in all fields for the young women of today. So in closing ,yes we screwed up a lot,just remember what we got right.
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