Why Won't Americans Save?

The editorial misses two major disincentives for savings. First, as interest rates decline for borrowing, so do interest rates on savings. A lower return on savings encourages Americans either to buy now, as the government is urging them to do to help stimulate the economy, or to pay off debt for which interest rates are not declining.Second, the current income tax on interest income exceeding a low limit discourages anyone from saving large amounts. A higher allowance would greatly increase savings, creating funding for loans and investments and consequent employment to replace the taxes lost. Ernie Karsten, Berkeley, Calif. Letters are welcome. Only a selection can be published, subject to condensation, and none acknowledged. Please address them to "Readers Write," One Norway St., Boston, MA 02115.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK