Americans appear to be in a paradigm change. It has been greed over need, which is changing as difficult lessons are being relearned. It has always been simple. If you save, you don’t move backward, only forward. If you invest, you are gambling, and values can go up or down. Homes and 401(k) plans are a gamble. There are no guarantees.
Regardless of what the government says and does, it seems the switch to more savings has been thrown. In the long run, this is very likely a good change for our country. For years we have been told our savings rate is too low. Now we are being told our spending rate is too low. It doesn’t add up or make sense.
People seem to be moving in the direction of common sense and safety as they realize the pain involved when you roll the dice and don’t win. It may be well to remember that the odds tend to be in favor of those who control the game.
Will Rogers still has it correct: “The return of your money is more important than the return on your money.”