People actually start doing something smart with their money: No spending it as fast or faster than they earn it.
Keynesian Knightmare: US Savers Outnumber Spenders By Record Numbers
“Janet, we have a problem,” is the resoundingly loud message from the latest Gallup poll of Americans preference (and relative enjoyment) of “saving” vs. “spending”. It seems, despite all the hoop-la and exuberance about an ‘economic recovery’ that is pent-up due to weather but about to break out to escape velocity, the majority of Americans continue to enjoy saving money more than spending it, by 62% to 34%. The 2014 saving-spending gap is the one of the widest since Gallup began tracking Americans’ preferences in 2001. How long before a discussion of negative rates re-appears as the rich and powerful Oz-ians contemplate the latest effort to ‘change’ people’s mass psychology?
I can almost hear the cries of Obama Administration officials now….
“If you don’t spend more money, you’ll never get your economic recovery!”
Which will shortly turn into
“Spend more or your a racist for making Obama look bad!”
“Which will shortly turn into
“Spend more or your a racist for making Obama look bad!—
Which rapidly leads to “Bail-In Time! We have to *cough*raid your savings accounts*cough* save The Peoples money from the clutches of the Evil Bankers!”
I suspect that this is more likely due to nobody having any left-over money TO spend after living expenses get paid. Not sure how that qualifies as “saving”.