Addition to that asians expect few benefits from the

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addition to that, Asians expect few benefits from the governments at old age and this makes them practice a higher precautionary saving. Generally, there are low savings coming from the old people. This is because they tend to use what they have already saved in their youthful days. Most of them do not work and this makes them have little or no money to save. Increase in population of the youthful working Americans can solve this problem as they tend to save more. (Beshears, John et al 2009) According to Greg Mankiws blog date 3/28/2014, people save to prepare themselves for retirement. From a macroeconomic perspective, saving will increase the loanable funds which will finance investments of other people. To make the people save more, the government can play a vital role by ensuring that there are tax benefits for those who save. This will act as an incentive or will encourage people to save more as they bear in mind that their savings will not be highly taxed. Implementing the “Saving More tomorrow” as proposed by Richard Thailer will also play a significant role in making people save more for the days to come. The program in a way tries to make automatic saving become part of life. Directing part of people income into savings directly will make savings to increase. The program will make sure that part of a person’s salary is committed to savings. This will ensure that the amount of retirement increases gradually over time.
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  • Spring '16
  • DR LIZZIE GACHIE
  • Economics, Saving, higher precautionary saving

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