Given the evidence on low asset holdings among the poor, particularly for single parents but also for some other groups, saving and dissaving
are likely to explain only a small portion of the overall differences between the income and the consumption measures of poverty.
Because there is no dissaving
, the pure rate of interest does not systematically rise.
This is a form of dissaving
, as the country consumes more than it produces.
Hamilton: It could be part of the story, because part of dissaving
is depreciation of fixed assets, right?
The US has an enormous current-account deficit because the federal government's dissaving
by the public sector on the back of lower tax base and a rigid current expenditures block;
This process was repeated several times to produce conditions equivalent to dissaving
the nCaP samples in solutions with initial [H.
Of course, in the United States, private household demand may remain weak ha the short term but government spending is snore than making up for it, leading to large dissaving
at the national level.
7) After 2025, the ratio of working-age adults to retirees is due to fall dramatically, inducing significant dissaving
It may be possible for the poor to finance their consumption payments by dissaving
of by borrowing--a process which cannot be sustained in the long run.
Normal patterns of human capital development and working life entail people having earnings streams that rise with age and then decline, so the theory of consumption smoothing implies a period of borrowing, followed by saving, followed by dissaving
(drawing down savings).
74) The mixed messages the card may send was best summarized by representatives of the Heritage Foundation and Retirement Security Project who stated, "because we believe that ease, convenience, and minimization of transaction costs can have a significant effect on behavior, we worry that a debit card for 401(k) borrowing might function as an effective behavioral strategy for dissaving
rather than saving.