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China's households do have high saving rates.
The currency likely plays a role alongside high saving rates.
They have plenty of funds because the societies they operate in have high saving rates.
At university, I had believed that socialism would efficiently achieve high saving rates and high economic development – and produce greater equality.
The high saving rates of the richest few percent of households (at least in the United States) are hard to explain in such a framework.
The most popular solution is to incorporate a "bequest motive," which explains the high saving rates of the very rich as resulting from beneficence toward their descendants.
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Neither is a high saving rate.
So, despite India's high saving rate, capital available for investment in infrastructure is scant.This may be about to change.
Therefore this economy, like China's, has a remarkably high saving rate (the 50% of corn not eaten).
This will add to households' spending power and erode China's high saving rate, the sharp rise of which owes a lot to corporate tight-fistedness.
But the problem is not so much a low saving rate in the U.S. as a high saving rate elsewhere.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com