How much do the unemployed save?
Reader comment on: McNabb Versus Krugman
Submitted by ben (United States), Sep 27, 2010 20:08
If you are a family facing foreclosure, or with a spouse who just lost a job, I think McNabb's advice may sound a little cold hearted. If people have no money to save or spend, that is a problem. This is the case for millions of people. Government can help alleviate this situation temporarily by extending unemployment, or better yet, directly hiring people. One other issue with saving is that much of that investment will leave the country. Vanguard invests in international equities along with all other financial products. If the government cuts taxes for the wealthy, they may save more, but it may benefit workers in another country more than in the US. I actually have less of a problem with this than others - kids in India need to eat too.
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