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Big budget deficits reduce America's already abysmally low saving rate.
Mr Gramlich frets about the budget deficit and America's low saving rate.
But at some point other factors, such as a low saving rate, may become more significant.
In the process, they contend, each country would also achieve progress in addressing its internal economic challenges, such as the low saving rate in the United States.
As with Greece, the bulk of public debt is held abroad and the country's low saving rate means it too depends on foreign buyers of fresh debt.Could contagion spread further?
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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Namely, the global imbalances which permitted the west to access cheap credit despite its low saving rates, particularly the US and the UK.
We cannot boost the chronic low saving rates of our households and government by starting a trade war with China.
The GAO Government Accounting Officee) came back with a very fine report and they said what you should do with that money is save it because we have a very low savings rate in this country and this would double it.
A third issue we have to address is the low savings rate and the large gap between what individuals have saved and what they will need in retirement.
The problem lies in the low savings rate.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com