Consumer Spending Probably Stalled in May: U.S. Economy Preview

[Chan790]

13. No, they should spend to stimulate the economy to forestall job-cuts and layoffs.

Unfortunately, the way our economy is set-up currently...saving is always going to be bad in the near-term. Americans shouldn't save. Some people are going to harp on the savings rate anyways...but Americans still should not save. Savings interest rates are low to discourage saving intentionally...push the money out of savings and into the marketplace.

I recently left a bank and we were talking about charging people even more for savings than we already do because we don't want the money on deposit, we have nobody to lend it to anyways and we don't even want to pay the pittance of interest we're currently paying for economically-dead deposit funds. (Currently if you have less than $5000 on deposit with my former employer, we're charging more in fees than you're earning in interest. You're breaking even until you have the $25K to open a Money Market Account.)

They however should cut-up their credit cards and pay down debt if possible. I shock people that I can live comfortably on $25K...it's because I have nearly no debt. I have no savings either, saving money is neither helpful or economically advantageous. There is more economic utility to capital investment and spending on items of utility ATM.