Re:Living in Switzerland ruined me for America and its lousy...
by komali2 on Sunday June 16, 2019 @04:06PM
(#20197602)
This is the first time I've heard that the reason Americans aren't saving money is because of their confidence in the USD. Typically the reasons are that they can't afford their healthcare or housing costs, or are just financially illiterate.
If I wasn't confident in my currency, why would I save in it? The collapse of my government destroys my investment at the same time.
Net income is a better measure than net worth, and net income is higher in the US than in Switzerland -- both in absolute terms and relative to the respective cost of living.
Why is net income a better measure? Well, for one thing, if a country's economy is in danger of imploding and people can guess that that is so, they'll start saving more money. Living from paycheck to paycheck is irrational in any country, but it is less irrational the stabler the government and the economy of your country.
Lack of stability or more precisely the perception thereof is part of the reason personal savings rates are higher in China than in the US for example.