Difference between revisions of "Savings Levels in West Rise"

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The world continues to recover from the financial crisis.  Citizens of developed countries increase their savings rate due to economic uncertainty.
Keynesian economists believe that a country can spend its way out of a recession.  However, during the last few years of economic uncertainty, savings rates in developed economies are increasing.  This decrease in consumption could prolong the recession.


Inhibitors:
1. Developed welfare programs lessening the cost of unemployment
2. Government work programs
3. High levels of innovation developing attractive new products


Inhibitors:
Enablers:  
 
1. Push by some to use Hayekian economic principles
1. Debt levels need to be serviced
2. Reduced demand by Asian countries to purchase US government debt
 
2. Unemployment rising
 
3. Consumers love to spend
 
 
Enablers:
 
1. Double dip recession a reality
 
2. Limited access to capital






[[http://scenariothinking.org/wiki/index.php/Future_of_the_City_Centre_2025#Economic_Driving_Forces]]
[[http://scenariothinking.org/wiki/index.php/Future_of_the_City_Centre_2025#Economic_Driving_Forces]]

Latest revision as of 10:34, 7 September 2010

Keynesian economists believe that a country can spend its way out of a recession. However, during the last few years of economic uncertainty, savings rates in developed economies are increasing. This decrease in consumption could prolong the recession.

Inhibitors: 1. Developed welfare programs lessening the cost of unemployment 2. Government work programs 3. High levels of innovation developing attractive new products

Enablers: 1. Push by some to use Hayekian economic principles 2. Reduced demand by Asian countries to purchase US government debt


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