1) One thing that I did not already know was that the national savings rate in America is below zero. This basically means that the average American is not saving any money, and is living in debt and buying things on credit. This is astonishing and reflects a culture in America that saving is not important, and spending is. I also did not know that 10 banks dominate 92% of the industry in America. This is huge because basically ten corporations control most of America’s wealth. This is also dangerous because with all our money in these ten companies, if they falter we are in big trouble. We have already seen this in the current recession. Another thing that I did not know 2/3 of the American economy is based on consumption. This is a huge shift from the recent past where we were mainly an economy based on production. An economy based on consumption is a bad thing because basically if we cut back spending, the economy will collapse. 2)
This is the end of the preview.
access the rest of the document.
Economy of the United States, credit card debt