VERY LIKELY Rampell Shift to Saving-OUTLINE

VERY LIKELY Rampell Shift to Saving-OUTLINE - III replace...

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Rampell, Shift to Saving, NYT, May, 2009. “Shift to Saving May Be Downturn’s Lasting Impact” I. Savings a. Americans may have no choice but to continue pinching pennies. b. Saving paychecks more than they were before the recession c. After tax savings has risen to 4% d. 14 percent in the 1970s to negative 2.7 percent in 2005 II. “I expect that the savings rate will end up at the end of this recession higher than it was going into it,” said Jonathan A. Parker, a finance professor at the Kellogg School of Management at Northwestern University a. Consumer spending makes up about 70 percent of the nation’s gross domestic product
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Unformatted text preview: III. replace that source of demand? a. the Chinese consumer b. Chinese save about a quarter of what they earn IV. Why save? a. Consumers lost their net worth b. resuscitate their retirement accounts or children’s college c. save to buy home V. Microwave= luxury item a. realizing they can’t accumulate everything b. “That may be hard for a lot of brands” VI. Ms. Kennedy home buyers a. Didn’t buy=good b. “A couple years ago it would have been easier for us to get a loan”...
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