By: Economic & Finance Report
In today’s economy people tend to be saving a whole of money, and economists are stating that this is not expected. When people save money, then there is no spending to assist in bolstering the economy; meaning there is even less demand for goods and services, which then also implicates stagnation.
Recently people are not spending as much but saving more, and this happens to be throwing economists through a “whirlwind”. People in a good economy should be spending according to economists, and when this is not happening, theories and concepts are sort of disproven to an extent. People are currently saving more money, even though interest rates are at the lowest that they have been for decades.
Borrowers are benefactors of low interest rates (theoretically), so spending should be indicative; this seems not to be the case in 2015. Currently, government and business entities are benefiting from low interest rates as opposed to current borrowers. Something seems to be brewing, but exactly what it is????? Is the definitive question…-SB