Economist (May 26)
“Despite a recent slowdown, the world’s second-biggest economy is more resilient than its critics think.” China is not dependent on foreign borrowing, enjoys a high saving rate (51% of GDP), has highly liquid banks, and very low central government debt (25% of GDP). “China plainly has enough fiscal space to recapitalise any bank threatened with insolvency. That space also gives the government room to stimulate growth again, should exports to Europe fall off a cliff.”
New York Times (June 19)
Most politicians worry about “saving” social security. The best solution might be “raising” it. Social security currently pays out 39% “of the average worker’s preretirement earnings,” but this could be raised to 50%. Why? Nearly 34% of “Americans have nothing saved for retirement — not even a hundred bucks.”
Tags: Retirement, Savings, Social security, U.S.
