What were the causes for reduced US saving in the 1980s and increased investment in the 1990s?
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ILOVE THE 90S BECOUSE THE GREAT WERE MADE IN THAT YEAR LIK ROADMASTER 96 AND CAPRICE LTZ 96 AND FLEETWOOD 96 AND GMC 96 AND PONTIAC BONNI EIVL 96 ( I LIKE 87)
861005
Most of those facts are incorrect. \n\nOil prices up until two months ago were the highest since the mid 1980s (relative to the dollar value). The price drop pre-election has already started to reverse, by +10cents in the past two days.\n\nSure, taxes are lower. But deficit spending has been at an all-time high, and the federal national debt has more than doubled in the past 6 years alone. In other words, we're gotten more in debt since Bush took office than in the past century before that.\n\nInflation is maintaining roughly the same rate as the past 15 years.\n\nYes, home values are double what they were five years ago. Which means that half as many people can afford to buy a house.\n\nForeign terrorist attacks on US soil occur on average every 7-9 years. So, the current regime doesn't get any credit for not blowing that by having one occur sooner.
781042
It would have to be offset to some degree with higher tax rates, which could further the tax advantages that investors have over wage earners.  If it was done properly, it would be at a rate of around 20% where it is offsetting more income of the lower tax brackets and less income of the higher tax brackets.\n\nIt would encourage domestic investment and increase the savings rate.  It would decrease foreign investments made by Americans.  It would probably slightly strengthen the dollar.  However foreign countries may react to this by decreasing their investments in the US by an amount that would offset any advantages of increased investment domestically.
1073297
1. Lower taxes\n2. Better job market/economy\n3. Not worried about terrorism on US soil\n\nOK, let me make the personal part more clear.\n1. I have more money in my bank account\n2. My husband has a better job with more money so I can stay home with the kids\n3. This one should be obvious...
1081591
Dems.  And we wonder why there were such deficits in the '80s.
1000539
Actually lagging indicators aren't as bad as you think.  The unemployment rate has been steady at or below 5% for some time now, T-bond rates around 5% are high compared to a year ago but moderate in any historical context, and core inflation is up but not dramatically, at least not yet.\n\nI don't think we're headed into a plain old recession like in 1990.  My speculation is the gross mismanagement of US finances will build into some crisis with highly unpredictable results, like maybe a collapse in the dollar.  A perceived crisis would clobber the stock market, but not necessarily in a long bear market like 2000-2003.
274539
The US economy has a history of cyclical highs and lows.  Most of the others were called 'Financial panics'.  See the bottom of this wikipedia page for more:\nhttp://en.wikipedia.org/wiki/Panic_of_1873\n\nThese lows are charecterized by job loss, banking failures, forclosures, loss of property value and bankruptcies.\n\nIn addition, there have been several recessions, which were like mini-depressions.  In the 1980's sections of the country had housing-value crashes and unemployment was high.\n\nSocial Security was put in place because people who are elderly when a economic downturn strikes can see their lifelong savings wiped out when they have no means to earn it back.  The old-fahioned word for retirement during a economic downturn can be found in the census records: pauper.
989264
I was not around then but definitely studied history and this comes to mind:\n\nPresident H. Hoover, 1932 - government loans to banks.  End of November 1,493 banks have suspended operations.  \n\nIt already started crashing from the America's economy in the 1920's to a sudden end in Oct 1929 - before the Wall Street Crash.   Then America started facing economical crisis that even impacted other coutries including Germany, a country that built up their economy on American loans.  Then the wealth from the 20's was dissapearing fast.\n\nThe rich lost money on Wall Street crash. The rest of Americans could not afford to lose any money then. Afterwards, noone had money to invest nor to buy comsumer products. \n\nThere was not shopping of any kind, and stores, factories, farmers, restaurants, industries, had no reason to employ people who were making products that were not being sold. \n\nUnemployment reigned. The depression took a while to get going but by the winter of 1932, it reached his top.\n\nAt the time there where: 12 million people out of work, 12,000 people being made unemployed every day, 20,000 companies had gone bankrupt, 1616 banks had gone bankrupt, 1 farmer in 20 evicted, and sadly, 23,000 people committed suicide in one year - the highest ever in the history of the US.\n\nIn addition: we had many social problem which, in spite of being such rich country we continue to have.  They were and still are:\n\nUnemployment and poverty \nBreakdown of families\nSoaring high school dropout rates (2 to 4 million)\nHomelessness\nOrganized protests\n\nAt the time, the American people  laid the blame on:\n"Three B's" then responsible for the Wall Street Crash and the Depression:\n\nThe "Bankers"\nThe "Brokers"\nThe "Businessmen"\n\nI am not sure this answer your question but that what I thought of as soon as I saw your date onthe screen!\n\nBye....
43434
No, it levels out.  Drastic increases only happen every 10 - 20 years.  Some local things may effect a large change but the economy won't.  The present rise in Real Estate has a lot to do with the interest rates being so low for so long, and with the help of some politician land owners hiking prices it causes a snowball effect.  You'll see a gradual increase but look at the supply and demand, and the over pricing that's going on right now.  It's baseless and will take a few years to catch up.
978249
Break it into two sentences. Easier. Concise. Clear.\n\nWe should consider some factors that lead to underfunding. One is that Americans live longer.\n\nOr:\n\nLet's consider some factors that lead to underfunding. A major one is that Americans live longer.
426382
No, that led to all kinds of perversions of market forces in the past. Liquidity is also an issue. \n\nIf it ain't broke, don't fix it.
221216
I don't know who told you that, but typically, what you could buy last year cost less than what you would pay for it today. This means that last years dollars were actually worth more. That's what inflation is all about.
439686
The main one I can think of is industrialization. Following the Civil War, we witnessed the birth of corporate America and the making of Getty and Rockefeller. Fortunes were made in Oil and Steel.
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1. The economic impact of the retirement of the Boomers.\n2. Loss of privacy/civil rights.\n3. The National Debt.\n4. Long-term deployment of troops in mid-east combat zones.\n5. The economic imbalance with China.
234899
Simple economics. USD is becoming weaker because of inflation, the US government printing a lot of money, huge government debt, and about a million other reasons.
474044
There is currently a YEARLY surplus of Social Security  withholding that is being generated by boomers being at their highest lifetime earning levels, and a not-yet increased demand for Social security payments.  It is decreasing fast.\nThis surplus is 'borrowed' into the general budget of the United States.\nIn order to pay Social security back, taxes would have to be increased, because...we just borrowed that money from ourselves.\n\nIf people stop contributing into Social security and start putting money into Individual Investment accounts, the Social Security payments will not have enough SS withholding to pay them - in other words, the people who paid into Social Security all their lives would face a insolvent fund.\n\nOnce you put your money into a Social Security personal investment (with a contracted outside investment company) your investment has the same pitfalls that private investing has.  It can suddenly lose half it's value during a market correction, it can be lost entirely should the country go through one of the downturns that usually happen about every 50 years...\n\nPanics, recessions and Depression are cyclical economic downturns that have roiled this country on a regular basis since it's birth.  They are characterized by bank failures, bankruptcies, foreclosures, business failures, and declines in property values.  Before the very recent creation of Social security, the term for retirement during an economic downturn was PAUPER.
12871
GDP was last negative in 1991, when it lost .2%. Before that, you must go back to 1982, when the GDP lost 1.9%